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Consumers need to protect themselves from PPI scams

Over the past few months, there has been an increase in the number of missold Payment Protection Insurance (PPI) scams taking place. In these situations, fraudsters have contacted residents claiming that they can retrieve thousands of pounds in compensation for a small administration fee. It is important for consumers to avoid being duped and stay vigilant at all times.

The most common way that fraudsters will contact people is by phone. Callers will often claim that they are calling from the Ministry of Justice or other official bodies, before asking people to pay administration charges by way of Ukash vouchers or other money coupon means. In other cases, consumers already involved with a claim firm have been contacted by fraudsters regarding their missold PPI, with scammers saying that they are from the claim firm and that they need to take a fee.

Staying vigilant is paramount if people are to safeguard their money. In the case of cold calls, no money should ever be given, and local crime reduction officers can be contacted. Meanwhile, legitimate claim companies will never call and ask for money up front. If this occurs, consumers are advised to call their claims firm in their own time to discuss the cold call.

Missold PPI compensation can provide people with a healthy sum of money to enjoy in this time of economic crisis. However, it is very important for people to stay alert to frauds so that they do not lose out further.