| Claiming PPI Compensation, Claims Management Companies, PPI

PPI Claim Firms Support

Individuals making claims for mis-sold PPI are generally counselled not to seek assistance of Claims Management Company (CMC) and rather do it all by themselves. But, as it turns out most of the plaintiffs ignore that advice and allow claims company to carry out the entire process for them.


As per the latest research conducted by the consumer publication “Which?” it’s revealed that more than half of the customers make PPI claims with the assistance of services offered by CMC, instead of directly dealing with their respective banks or financial institution, who mis-sold PPI to them.


One of the major amongst the plaintiffs’ concerns is the viewpoint of dealing with perplexing administrative processes and all the effort and time it may involve.


“Which?” said that their research found that individuals are put off by the prospect of lengthy and intricate paperwork-with one in three who had a pertinent financial product-considering it wouldn’t be easy to check whether they had been mis-sold PPI or no.


The publication’s research further mentioned that they even found people who thought it’d be easier for them to make PPI claim compensation through CMCs rather than doing it directly from their bank.


The respected consumer publication says it wants every individual in the UK who has been mis-sold PPI on anything right from mortgages to loan, car insurance and credit cards to be rightly compensated.


With the PPI claims deadline (August 2019) in place, August 2017 marks as the beginning of a two year period for making PPI claims before the complete scandal is wrapped up by the Financial Conduct Authority (FCA).


Not every claims firm is happy with this, however. We Fight Any Claim-based in Wales-has recently launched a legal challenge, wherein they argue that the deadline would only benefit the huge banks and not the customers. This legal move is a form of judicial review and the firm says it’s soon expecting a judgement from the High Court whether it could go ahead or not.


However, the FCA mentions that the cut-off period is fair enough and 2 years time is sufficient for individuals to check whether they’ve been mis-sold PPI and to make a claim. They’re also going to remind them about all of this in their forthcoming advertising campaign.


Alternatively, the recent developments come as the big UK banks and financial institutions accountable for mis-selling of PPI to tens of millions of customers are collapsing under the strain of PPI payouts.


Lloyds Banking Group has now added up its total PPI compensation expenses and refunds and it comes down to a whopping £18 billion, whilst Barclays is suffering from a £1.4 billion loss because of PPI payouts and has set aside a further £700m to deal with the claims.


The credit card firm Capital One is also feeling the strain and had £45.4 million in the red previous year. Lloyds bank says that it’s continuing to deal with a deluge of PPI claims, which has amounted to some 9,000 per week. With payouts on an average of £3,000, this is very huge business for the ones involved in managing these claims.


In fact, a sum total of £27.1bn has been repaid since 2011 and claims management company have enjoyed a plentiful £5bn in fees till date. Meanwhile, the authorities and other-including consumer publications-might well be influencing individuals to deal with their own PPI claims and avoid seeking assistance of claims firms.


However, as per the research conducted by “Which?” it has been made clear that the proficiency of claims management company in this particular area is winning the day.


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