Share this article: Bookmark and Share

Consumer Law Blog

The hidden intricacies of claiming for PPI

by Bradley Askew 06 December 2011

Since investigations have unearthed the PPI banking scandal that has affected thousands of people in the UK, people are finding that claiming for PPI compensation is not always the simple task it should be, and it is not uncommon for the process of claiming mis-sold PPI compensation from banks to be protracted, wearisome and full of disputes.

While banks have been ordered to let affected clients know that they have mis-sold them PPI, it appears they are under no obligation to do it quickly, although this has much to do with the amount of people that have been affected.

It could take a very long time for banks to contact each and every person who has been mis-sold PPI and it is therefore up to the person who suspects they have been the victim of mis-sold PPI to inform the bank of their grievances.

To take away some of the burden, Claims Management Companies (CMCs) have been well- publicised in the media as the "go-to" people for handling mis-sold PPI cases on behalf of their aggrieved customers.

While there is a camp who believe that CMC's are taking advantage of people because they believe  most people can successfully make complaints and agree on repayments from banks without the need to consult CMC's, the CMC's are not forcing people to use their services.

CMCs are simply offering a service to people who may have difficulty understanding or carrying out the process involved in claiming for their mis-sold PPI compensation, and the more respectable CMCs do this on a no win no fee basis. While it is true that CMCs can take around 25% of the money that is successfully claimed back from banks, it can mean that a person doesn't have to deal with the stress of the complaints procedure, such as gathering the initial evidence and it also means that their complaints won't be ignored or avoided by banks, which can often sadly be the case.

Whichever avenue a person who has been mis-sold PPI decides to take - whether they do it by themselves or through a reputable CMC - it is important not to give up the claim for what is rightfully theirs, even if it means an extended, tedious battle with the bank responsible.

Comments (1)

Post a comment

  • Mary07/12/1100:02

    I do Ppi Reclaims advice, I am saddened at how many people have been sucked into the Ppi scam, people have lost their homes, their cars and are now bankrupt because they were not asked the relevant questions when sold Ppi or were not even aware that they had it at the time. Sales people should have no place in the finance sector and commissions should not be paid per Ppi sale.