Millions of people across the UK have made a claim for compensation because they was mis-sold payment protection insurance (PPI), this has resulted in the banks paying out billions. Some of these people filed the claim themselves, others went through a claims company.
If you haven’t filed your claim yet then here’s how you can do it: you can file the claim yourself, or you can go through a claims company.
Those people who have busy schedules or simply don’t want to deal with their bank or lender are going to benefit most from going through a claims company. Throughout the next few sections we’re going to tell you how you can separate the good claims companies from the bad.
How Much Do They Charge?
First and foremost, all claims companies charge a fee for their services so you want to make sure that the fees you’re being charged are reasonable. Don’t expect to get the services of a claims company for free, but don’t expect to pay through the roof for the services either.
A reasonable fee for the services of a claims company would be anywhere between 10-25%. You’ll find that some companies will charge as high as 40% and these are the companies that you’ll definitely want to steer clear of.
Remember that just because a certain company has higher fees, it doesn’t necessarily mean that they will be able to claim more compensation for you.
It’s always extremely important to take a company’s reputation into account, this is especially true for claims companies who have received some negative publicity over the recent years.
When enquiring about a company’s reputation, you should make sure to ask about their success rate, and an estimated amount of claims that they have processed for clients. The company might also have some testimonials from previous clients, hopefully then you should be able to reach out to these clients and ask about the service they received.
The whole claims management industry gained a terrible reputation several years ago because a fraction of companies were operating without proper regulation. This resulted in consumers being swindled once again, paying high up-front fees, and being charged excessively high audit fees.
You should always make sure that any claims company you plan on dealing with is properly regulated. Regulation is carried out by the Ministry of Justice (MOJ), they even have a dedicated department known as the Claims Management Regulator (CMR) Unit.
In addition to this, you should also ensure that the claims company is a member of a professional legal body. If you’re based in England then this will be the Law Society of England and Wales.
Choosing a company that is properly regulated will ensure that you only receive the highest quality service. Regulated companies are held to much higher standards and must always operate ethically.
PPI claims companies in general have quite a bad reputation, but that doesn’t mean that you should stay away from them all. With the help of the advice and guidance given above, you should easily be able to construct a criteria of good claims companies.
Ultimately, a good claims company will have the three following characteristics: the company will charge reasonable fees (anywhere between 10-25%), have a good reputation, and also be regulated by the CMR.