By this point you’ve probably made the decision to either file your own claim for PPI compensation, or go through a claims company who will handle the whole process for you. If you’ve went with the latter then there are a few things that you’ll want to know about claims company.
Throughout the next few sections we’re going to discuss some very important points relating to claims companies and by the end you’ll have a complete checklist.
Check That the Company Operates above Board
There is one vital piece of information that you should attain before you deal with any claims management company: always make sure that the company is properly regulated and is a member of a professional body.
In the past there has been a lot of companies operating in the UK without proper regulation and this is one of the main reasons for the industry’s bad reputation. The company should be regulated by the Ministry of Justice and should also be a member of the respective professional body—the professional body will depend on your location.
Some companies will ask for upfront fees, and even though there’s technically nothing wrong with this, it is frowned upon within the industry and you should always exercise caution in these situations. We’ll talk more about upfront fees later on.
Ask about the Company’s Success Rate
You should also ask about the company’s success rate and how many cases they have dealt with in total. As you would expect, the more claims a company has dealt with and the greater their success rate, the better they are at their craft.
You should be wary of any company that tells you that their success rate is 100%, or even above 90%. It’s quite common for claims to be rejected for any reason by the lenders, and the claims companies can’t always stop this.
Numbers aren’t the only thing that you should ask about, you might also want to have a brief discussion about the history of the company and other general details.
A Quick Word about Upfront Fees
As explained above, upfront fees are always something that you should be aware of. These types of fees are usually put in place by companies who don’t intend to completely carry out the services that they have promised—hence why they are asking for money upfront.
However, you might find some legitimate companies that do operate on an upfront fee system. If this happens to be the case and you are about to provide the company with funds upfront, always ensure that you get this in a contract or some other form of paperwork so you have proof of the transaction.
Claims management is actually a very heavily regulated industry and all too often a person will choose a company that doesn’t follow the proper regulation. The best claims companies in the UK are regulated by the Ministry of Justice within their Claims Management Regulation Unit.
You can find more out about regulation and operating procedures by searching “claims management regulation” or by going to the government website.