Consumers can reclaim mis-sold PPI for free
Consumer groups are encouraging victims of PPI mis-selling to claim their money back themselves, without the help of a claims management company.
An intensive ‘no win no fee’ advertising campaign is tempting many companies to turn to claims management companies to reclaim PPI.
moneysavingexpert.com and Which? have now joined forces in an advertising campaign of their own.
They have produced a radio advert to inform consumers that reclaiming mis-sold PPI is a simple procedure which they can easily manage themelves.
“Forget ‘no win no fee’. Far better is no fee,” the ad says.
Claims management companies may charge 25 per cent of a payout plus VAT for acting on behalf of a victim of PPI mis-selling.
The groups are planning to hold a meeting with banks, credit card providers and the financial regulator on 23 April, to discuss how trust can be restored in the PPI reclaiming process.
They will also hold a separate meeting with claims management companies.
These companies often use template letters similar to the letters provided free-of-charge by consumer groups.
moneysavingexpert.com has published a DIY guide on reclaiming PPI on its website, including free template letters.
Which? executive director Richard Lloyd said:’We want to see real action to make it as easy as possible for people to reclaim their money.
‘And we need the government to speed up regulation of claims management companies.
‘It’s a scandal that too many CMCs have been ripping off consumers, who don’t realise that there are simple steps they can take to claim back their money themselves. We’re saying to people today – don’t get robbed twice.’
The PPI mis-selling scandal has contributed to a 29 per cent increase in complaints against the financial service sector.
According to a report released last month overall complaints against the financial services sector have increased to 1,660,578.