The Financial Conduct Authority (FCA) has set the PPI deadline for 29th August 2019. All consumers who believe that they may have been mis-sold payment protection insurance need to make their claims before this date.
Arnold Schwarzenegger is the face of the campaign. His robotic head can be seen on adverts and posters around the UK. With the tagline “do it now!” consumers are urged to decide if they want to make a claim.
Despite mixed reactions to the adverts, the message is reaching consumers. The FCA reported a payout of over £400 million to consumers in January 2018. This is the highest figure since March 2016. Since January 2011, over £30 billion has been paid to customers for the mis-sold insurance. If £400 million is paid every month until August 2019, the banks will repay nearly £40 billion by the time the deadline arrives.
The increase in claims is having an impact on the banks. Lloyds is reportedly receiving 11,000 PPI claims a week. Although many banks and lenders have started to recover from the scandal, they are still dealing with an increasingly high volume of claims.
As consumers hurry to make their claims before the deadline, both the banks and PPI claims companies are busier than ever before.
Claims Companies are Handling More and More Claims
The best PPI claims companies are now handling hundreds of claims per day. Many people prefer to use a claims company to handle the case on their behalf, as there are multiple benefits for the claimant. They are able to uncover if PPI was even sold to them in the first instance, as many consumers can’t remember or are unaware if it was sold to them. For those with multiple PPI claims, complex cases and those who are busy, a claims company is an ideal solution.
Only the best companies will be able to handle the dramatic increase in claims as the deadline gets nearer. Companies must have impeccable customer service to stay afloat and increase sales over their competitors.
Clamp Down on Rogue PPI Claims Companies
Many people have negative opinions of PPI claims companies. It’s no surprise, as the vast majority of us have received countless text messages and phone calls from companies trying to sell their services. Some of these companies have also left customers out of pocket, due to unfair and extortionate fees. A claims company based in Swansea, for example, were ordered to pay a £570,000 fine for “coercing clients” into working with them. The company was taking money from vulnerable people and not following regulations to push through sales. In another case, one claims company was fined for making 75 million cold calls within four months.
The claims management regulator is aiming to better regulate claims companies by introducing new rules and imposing a fee cap. The new regulations came into force at the beginning of April 2018. These included no fees to be charged to a customer before the conclusion of a PPI claim and a client is able to cancel the contract at any time.
Regulations about a fee cap are also currently underway. The fee cap was expected to be passed through government in March, but was delayed. In the upcoming months, though, it is likely to be approved. The fee cap would mean PPI claims companies can’t charge more than 20% + VAT (24% total) on successful claims. For many companies, this will have a dramatic effect on their profits and overall business.
The regulations are in place so that consumers will only be able to use reputable claims management companies. Using a claims company that clearly states its fees and offers a no win no, fee policy is an excellent choice for those wanting somebody else to manage their claim. Finding a company that works under these terms means claimants can have professionals handle their case with the banks, and only paying fair fees for the service if their claim is successful.
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