Claims management companies for PPI – are they worth it?

Money Advice Service

Payment protection insurance (PPI) has been widely mis-sold. But you can easily make a complaint yourself – there is lots of free help available.

What claims management companies do

Be aware

You have until 29 August 2019 to complain about the sale of PPI.

Find more information about this and how to claim on the FCA website.

They take up complaints against financial services companies on behalf of people like you.

They deal with many types of complaints about financial services but are particularly interested in PPI complaints at the moment.

They might contact you by letter, telephone or text, offer to make a complaint on your behalf and promise to get you a large compensation payment.

But their charges can be high. For example, if you’re awarded £1,000 in compensation you could typically miss out on around £300 of that money.

If you’re contacted by a claims management company

Not sure what something means? Have a look at our Protection insurance glossary.

There is evidence to suggest that complaints management companies are making complaints on behalf of people who have never been sold a policy.

If you’re contacted make sure you’ve taken a policy out. You can do this by checking your paperwork.

It’s often sold alongside credit cards, loans or mortgages.

Making a complaint

You can make a complaint yourself. You’ll need to contact the business that sold you the policy.

It’s usually best to do this in writing and check the firm has received your complaint.

If you are unsure whether you have a PPI policy or whether you want to make a complaint our Money Advisers might be able to help.

You will not be charged for this service.

If you need help making a complaint, there is free support available.

For example, the Financial Ombudsman Service (the Ombudsman) has an online PPI resource that includes a questionnaire to make your complaint.

This will help you include all the relevant information.

Don’t worry if you’re not confident in dealing with the firm.

As long as you have given the firm eight weeks to deal with your complaint, you can ask the Ombudsman to take up the matter if the firm hasn’t responded or if you’re not happy with their response.

The Ombudsman is a free, independent service for settling disputes that consumers and financial businesses haven’t been able to resolve themselves.

The Ombudsman looks at the facts of the case – not at how well you present your complaint.

Many PPI complaints referred to the Ombudsman are found in the consumer’s favour.

And their statistics show that if you refer your complaint to them yourself, you’re just as likely to win compensation as if you were to pay a claims management company to do it for you.

If you do need somebody to act on your behalf, you could ask your local Citizens Advice Bureau, or a friend, carer or relative, to help.

This is your right.

Find out more about claiming for mis-sold PPI and the 29 August 2019 deadline on the FCA website.

Using a claims management company

From April 2019, the Government announced that the FCA would take over regulation of CMCs. Regulation will extend to Scotland, where firms are currently unregulated. It means firms will need to go through the FCA’s authorisation process.

The FCA’s proposals will require CMCs to provide a potential customer with a short summary document containing important information such as an illustration of fees charged and an overview of the services the CMC will provide.

This document will need to be provided before any contract is agreed.

CMCs will also need to highlight any free alternatives to using the CMC, such as ombudsmen schemes, in marketing material and pre-contract disclosures.

CMCs that buy so-called ‘lead lists’ from third parties will be required to carry out due diligence to ensure that the leads have been obtained legally and to keep records of this. The FCA is also proposing that CMCs will have to record and keep all calls with customers for at least 12 months.

Other requirements on firms will include a requirement for firms to hold capital linked to the type of business they undertake and further new requirements to protect any money firms hold on behalf of clients.

If you decide to use a claims management company for any type of complaint, make sure that it’s regulated by the Financial Conduct Authority.

If you’re unhappy with the service you’ve received from a claims management company, you can now complain directly to the Financial Ombudsman Service (FOS).

Stop unwanted calls or post

If you want to avoid being contacted by a claims management company (or other company without you having requested it) you can register with the Telephone Preference Service to stop receiving unsolicited sales or marketing calls, and with the Mailing Preference Service to stop unwanted post.

Whatever your situation, get clear, unbiased information and advice from the Money Advice Service.

If you can’t find what you’re looking for on our website or have a question about money, call one of our trained advisers on 0800 138 7777.

This article is provided by the Money Advice Service.

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We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

Some important information about Rest Less Money

We want you to understand the positives, but also the limitations of using our site. We operate in a journalistic manner and therefore all information, guidance or suggestions provided are intended to be general in nature, and you should not rely on any of the information on the site in connection with the making of any financial decision.

When we set out to build Rest Less Money, we wanted to be a trusted place where you could find helpful information about financial matters affecting the over 50s. As a free to use resource, we try hard to provide the best information we can, but we cannot guarantee that we won’t occasionally make mistakes. So please note that you use the information on our site at your own risk, and we can’t accept liability if things go wrong.

Key things to remember when using Rest Less Money:

We do not offer financial advice – As a journalistic site, it’s important to know that we do not provide financial advice. You should always do your own research before choosing any financial product so that you can be certain it is right for you and your specific circumstances. If you are in any doubt, please seek professional financial advice from a regulated financial advisor.

No Liability – please note that you use the information on Rest Less Money at your own risk and we can’t accept liability for how you choose to use the information given on our site. We will often provide links to content or products and services available on other third-party websites. These are provided purely for your convenience and we cannot be held responsible for any content, or any of the products and services offered on any website that we link to.

 

Accuracy of Information – We try to make sure that all the information provided on Rest Less Money is correct at the time of publishing as we want it to be the most helpful resource possible. Sadly, we are not perfect however, and so we can make no guarantees as to the completeness, accuracy, adequacy or suitability of the information available on the site.
Whilst we work hard to try and provide accurate information, deals and prices can change, so whilst they may be correct at the time of writing, providers may subsequently decide to alter them later – so always double check first.

A final note on the Rest Less Community Forums – always remember that anyone can post their opinion on the Rest Less Community Forums, so it can be very different from our own opinion and may not be factual or well researched. Always be wary of any content posted on the forums and be sure to do your own research and due diligence on anything suggested. 

We hope you find Rest Less Money a useful resource and we would welcome your feedback at [email protected] on how to make it even better. For more information on any of the above you can read our full terms and conditions.

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