Banks across the UK have enjoyed a very lucrative time over the last 20 years, selling Payment Protection Insurance to over two million financial consumers. Often, the cover was over-priced, unwanted and hidden inside loan agreements, leading to the mis-selling of PPI becoming the biggest financial scandal ever seen.
The scandal has launched a whole new market sector – the mis sold PPI claims industry – and in turn this has attracted many business to set up as claims management companies. Billions in compensation has been refunded so far with the majority of claimants choosing to go through an intermediary to get their cash back.
Choose your claims company wisely
Using a PPI claims company is the easy way of getting your cash refunded, there’s no need for a PPI calculator, paperwork, phone calls or legwork – they’ll find out what you’re owed and get it back for you. They will also charge you for the privilege. You can hire such a specialist to file a claim but bear in mind the following information when choosing a claims company…
1. Watch out for cold callers
Steer clear of companies that cold call you, cold calling is illegal in the financial claims industry and usually a sign of solicitation. A cold call may involve a company based overseas simply checking if you’d like to get a PPI refund then your details will be sold to the highest bidding claims company.
They’ll use persuasion tactics and the urgency to ‘sign up now’ – don’t, tell them ‘you’ve already claimed’ or you’re ‘not interested’ and if you do hear them out make sure you do your research on them before signing anything.
2. Get a physical address
Never sign up to claim through a company that doesn’t have a physical address and a landline number. There are too many fly-by-night businesses that want your claim and aren’t professional enough to handle it correctly. Always ask for a physical address and if you can visit them, they should be only too happy to see you in person. If they’re not – end it there.
3. Never pay upfront
You never need to pay upfront to make a mis sold PPI claim, a company should get their payment after they’ve won the money back for you. Pay upfront and at best it’s an expensive fee, at worst they disappear as soon as they’ve taken the payment from you.
4. Do your research
Always do your research before working with any financial claims company, check reviews, testimonials and forums. Check they’ve had successful payouts and ask for their MOJ number, this means they are registered with the Ministry of Justice and authorised to act as a claims company. Never work with a company that isn’t MOJ registered, you can check a registration number (an authorised business search) at the MOJ website: https://www.claimsregulation.gov.uk/search.aspx
Follow these four steps and you’ll stand a better chance of choosing a trustworthy, legitimate and professional PPI claims company to handle your claim.