Ministry of Justice Warns Against PPI Claim Malpractice
Many rogue Payment Protection Insurance (PPI) claim firms are cold calling individuals to try to make as many commission payments as possible. The Ministry of Justice (MoJ) said that some greedy firms, who can take up to 30 per cent of PPI claims, are calling customers and claiming that they can speed up the refund process or are the only company able to give cash compensation.
Claiming for PPI compensation is vital if individuals have taken out credit agreements over the past decade and were missold insurance. Compensation can be high, with full repayment of premiums being noted in addition to eight per cent interest on top. However, making claims should always be done through a reputable company as some firms are trying to take advantage of the unfortunate circumstances of customers to make money.
Cold calling claim firms claimed that they can speed up the refund process or that they are the only company to provide cash refunds, both of which are untrue. A representative from the MoJ revealed “We have made it very clear to businesses that we take a zero tolerance approach to any malpractice or attempts to take advantage of consumers. Claims management companies should remain in no doubt that if they breach the rules they will be closed down.”
For customers wanting to make claims, only reputable companies should be used and cold callers should never be taken up on the services unless background checks have been carried out. For, with firms taking a large proportion of claims, individuals could note less compensation than they are due.