Approximately 6000 invalid claims for mis sold payment protection insurance were submitted to the Financial Ombudsman Service (FOS) last year with claims management companies (CMCs) blamed for encouraging the influx.
The FOS settled over 220,000 complaints about mis sold PPI policies last year. This means these 6000 “bogus claims” as they are being disapprovingly dubbed only translate to 2.5 per cent of all claims made; a minute percentage when you consider the scale of the PPI mis selling scandal.
Sadly there are undoubtedly CMCs capitalising on customer’s misfortune by charging upfront fees so should the customer’s claim be unsuccessful, they are in a worse position than they would have been had they never made a claim.
But these CMCs, alongside the negative spin currently being put on “bogus claims”, should not deter people from making a claim.
Payment protection insurance is notorious in its disguise with many customers bamboozled over whether they have even have a policy. Lenders, as one of their common PPI mis selling tactics, automatically added PPI to the credit agreement without consent or knowledge from the customer.
PPI Return may be able help anyone who is considering making a claim. We do not charge any upfront fees and our no win no fee policy means the customer will pay nothing if their claim is unsuccessful. There is therefore absolutely nothing to lose and potentially a lot to gain.
We have already retrieved over £32m in compensation for our customers mis sold payment protection insurance including one customer who received a payout of £143,411.
It is vital the bad press being stirred up about invalid claims does not discourage those who could have a claim from making a complaint. After all had lenders opted for transparency over PPI rather than resorting for underhand mis selling tactics in the first place or even if they, once their actions had been uncovered, made reclaiming PPI easier, perhaps we wouldn’t be in the current situation.