Millions of people in the UK have made a claim for mis-sold payment protection insurance (PPI) and have received a significant amount of compensation, however, there are millions more people who are yet to make their claim.
If you haven’t made your claim yet, it’s good to know that you have two options when it comes to claiming: you can file the claim yourself, or you can go through a PPI claims company.
Each option has its own pros and cons and this can make the decision quite difficult. One of the primary reasons why many people don’t use claims companies is because they generally have a bad reputation—throughout the next few sections we’re going to see if PPI claims companies are really as bad as they seem.
Are the Company’s Fees Reasonable?
One of the easiest and most effective ways for you to separate the “rogue” companies from the legitimate claims companies is by looking at the fees that they charge. A reasonable fee for the services of a claims company is in the region of 10% to 25%, you will most likely find the majority of companies charging more towards the higher-end.
These fees would be considered reasonable by industry standard—you definitely shouldn’t be paying anymore than 25% for the services of a claims company. It would also be worthwhile for you think about how much this fee would affect you if the claim was to be successful. Think about how much the service would cost if you received thousands of pounds in compensation.
Make Sure You Know about Regulation
Claims management companies are regulated by the Ministry of Justice (MOJ); they even have a specialist branch/department, which is known as the Claims Management Regulation Unit.
Before you deal with any claims company, you should always check to make sure that the company is regulated by the MOJ. The company should also be a member of a professional body such as the Law Society of England and Wales.
You should be very concerned if you are about to deal with a company that is operating without regulation and without being a member of a professional body such as the one mentioned above. Regulation is important because it means that the regulated companies have to adhere to specific guidelines and must uphold extremely high operating standards.
Complaining about a Claims Company
There are three ways you can make a claim about a claims company if you are unhappy with the service that you have received: you can contact the claims company directly, you can contact the CMR, you can contact the FOS.
You should always contact the claims company directly before you contact the CMR or the FOS. Ask the company for a copy of their complaints procedure and make a complaint, giving them the chance to put things right.
If the company hasn’t solved your complaint within eight weeks, you should then go to either the CMR or the FOS. They will help you with your case and ensure that your complaint is properly heard.
Claims companies definitely aren’t as bad as they seem—sure, there are a few bad companies out there, but that’s the case with any industry. As we have discussed above, it’s extremely important that you ensure that the company’s fees are reasonable, that the company is properly regulated, and that you know how to make a complaint.
Knowing these three things that we have discussed above will ensure that you don’t get caught up with the “rogue” claims management companies that seem to be too prominent in today’s industry.