Record amount of PPI claims made to the Ombudsman

Complaint formA massive 86% of all complaints made to the Financial Ombudsman Service (FOS), in the last six months, were regarding Payment Protection Insurance (PPI). Banks, as well as the Ombudsman service, have been handling complaints for PPI mis-selling for a number of years now, but despite this the number of complaints is still at a record high. The FOS handles cases where the complainant and the seller of the PPI product, cannot reach a satisfactory resolution to the case; over a quarter ...

Rogue claims management companies face crackdown

Rogue claims management companies face crackdownNew figures, from the Ministry of Justice, show that hundreds of rogue claims management companies were closed down, or warned about their practices, during 2012. The claims management industry has grown significantly over recent years; as have concerns about many of their practices, which often include unlawful and unsolicited use of text messages and emails to generate new enquiries. The industry is regulated by the Ministry of Justice, whose Claims Management Regulation Unit has shut down 209 firms between April and ...

PPI compensation leads to tax concerns

Financial experts are becoming increasingly concerned that recipients of PPI (Payment Protection Insurance) compensation are underpaying tax. PPI compensation PPI compensation has made huge headlines over the past couple of years, with many of the UK's major banks paying billions in compensation to people who were wrongly sold the insurance. Last year UK banks paid out £1.9 billion in compensation and the total bill is expected to be above £5 billion. There are generally two parts to the payout, compensation and in some cases interest on the compensation amount. The average payout is £3,000 and whilst the compensation, which forms the largest proportion of ...

25% of claimants don’t know about PPI claims fees

The mis-selling of Payment Protection Insurance is perhaps the biggest and most costly financial scandal ever in the UK. However, new research has shown that a quarter of people using claims management companies to handle their case are unaware of the fees they will be charged. Fees for Claims Management Companies A survey of more than 2,000 people, carried out by Which? and Moneysavingexpert found that 25% said they did not know Claims Management Companies charged a fee for handling their case. The fees charged by Claims Management Companies are generally around 25% of the claim and can run into many thousands of ...