Claiming for PPI - Using a Claims Management Company

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by: BTLewis
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Date: Sat, 28 Jan 2012 Time: 2:06 AM
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Across the UK, PPI policies have become a real headache for banks and lenders, as an increasing amount of people realise that the sale of their loan, mortgage or credit card was carried out in a dishonest fashion.

Since a ruling back in April 2011, banks have been told by the High Court that they must do their utmost to process relevant and justified claims, as well as dealing with them quickly and efficiently wherever possible.

To claim for PPI policies mis-sold alongside a loan, mortgage or credit card in the past ten years, there are a few avenues you can travel down.

Make a PPI Complaint
Firstly, you can claim yourself. Anyone can initiate a PPI claim against a bank or lender, usually in the form of a letter to the offending bank/institution with the PPI policy number, relevant dates and reasons why they believe they should be reimbursed.

If a bank denies their claim or ignores it completely, a person can then either register a complaint with the Financial Ombudsman Service (FOS) or they can contact a claims management company to take the fight to the banks on their behalf.

Claims Management Companies
While CMCs have had some bad press, it is best to clearly understand what it is they do.
Reputable CMCs offer a few worthy things of note that can help a claimant get their money back from banks, and the key elements that they bring to the table include their knowledge and experience of the PPI claims process.

Having dealt with a number of PPI claims, a decent, regulated CMC will be well versed in the tricks and strategies employed by banks to stop people receiving PPI refunds when they claim. A reputable CMC will generally work on a no win no fee basis, asking only for a percentage of the claimant's compensation in the event of a successful claim for PPI compensation.

It is highly essential to understand all the charges and fees that a CMC puts in a contract, even a reputable one. Scrutinise all their terms and conditions closely - just as closely as if you had another chance to scan that mis-sold PPI policy again. Make sure there are no stipulations in the contract in which you will incur extra charges if certain criteria is not met.

It is not unheard of for claims companies to take advantage of already angered customers - in some cases taking disproportionate fees in comparison to what the claimant actually wins overall.

A respectable CMC should not cold-call customers offering their services, and a customer should not go with them if they charge up-front fees, regardless of whether they win or lose a case.

However, if someone finds the claiming process difficult, does not have the time to claim or is not very good at dealing with legal issues and unconfident of their chances, enlisting the help of a reputable CMC to claim for PPI could be a rewarding option - it just pays to read the small print.

About the Author

Bryan Lewis has been following the PPI scandal for some time, writing for one of the UK's leading claims management companies.