Payment protection insurance (PPI) has been mis-sold for around two decades now. Millions of people have taken out a PPI policy over these past years, but we have only recently realised that this policy was probably mis-sold.
Now people are trying to make a claim for PPI, but they have another dilemma which they must face: should you use a PPI claims company or claim yourself?
Throughout the following sections we’re going to go through each option with a fine-tooth comb so you can easily see the option that is right for you.
The Route of Self-Claiming
Self-claiming is a much cheaper option compared to using a claims company — in fact, it’s free. This is the primary reason why some people are against using claims companies. However, the amount of paperwork that you need to go through in order to file your claim will surprise you.
Let’s go through the process so you can get an idea of how self-claiming works:
1. Firstly, you need to gather the paperwork for the policies you wish to claim on; each policy needs to be treated individually.
2. You then need to go through these policies and make sure that PPI was attached and mis-sold. PPI has been sold under several different names, so this can be difficult.
3. Once you have the paperwork and are sure PPI was mis-sold, the next thing to do is file your claim. To do this you’ll need to write a letter including your account details and why you believe the claim was mis-sold. You can find templates online.
You can probably already tell that self-claiming can be time-consuming, which is the exact reason why people prefer to go with a claims company.
Making the Process Simpler with a Claims Company
Claims companies do charge a fee for their services, which has been the point of controversy for quite some time now. However, after taking into account the amount of time and energy that needs to be put into a claim, their fee is completely understandable.
You can expect to pay anywhere from 10-25% for the services of a claims company. Even though this might seem quite expensive, their services can actually pay for themselves. This is because they’ll find the claims that you’ve most likely forgotten about. Companies have the time and resources available to search through your history much more thoroughly — if a company finds just one claim that you otherwise would have missed, their services would have paid for themselves.
Apart from the difference in cost and compensation, claims companies can also be very advantageous for busy professionals. The majority of us don’t have the time to go through paperwork and file claims.
Comparing the Two Options
Take a look at the list below for a quick comparison of the two options:
Claims companies charge a fee of around 10-25%, self-claiming is free.
It can be time-consuming self-claiming, but claims companies will handle everything for you.
Claims companies are able to search through your history more thoroughly and you could end up with more compensation. On the other hand, it’s easy to overlook a claim when your self-claiming.
It might be difficult to decide whether you want to go through a claims company or file the claim yourself, but the decision can be made much easier by following the advice and guidance given above. Ultimately, it all comes down to you. Your individual circumstances will decide which option is best for you, this is why there is no one-size-fits-all solution.