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News

PPI Claims Companies 'Aid Those Who Have Suffered Loss'

On the 27th July, the Ministry of Justice issued it’s third year assessment of the claims industry, and the impact that regulation has had on it. Within the report, the Ministry has portrayed claims companies in a positive light, making it very clear that they have encouraged people to make legitimate valid claims where otherwise they would not have done so: the majority of cases which occur in the area of PPI.

The report notes the fact that 94% of the claims made to the Financial Ombudsman Service were upheld, and that compensation was awarded. The Chief Ombudsman noted in his 2009 report that ‘One of the significant drivers of consumer complaints is the now substantially increased number and activity of claims-management companies.’ PPI has caused large amounts of controversy in recent years, with many companies confused by the PPI law and rules choosing to make claims.

The Chief Ombudsman also observed that ‘the marketing activities of claims-management companies have succeeded in identifying a very large number of consumers who have suffered loss. And this has resulted in many people being paid redress when they would otherwise have received nothing.’ Without claims companies aiding customers who are unsure regarding PPI law and rules, and whether they are eligible to claim, then many customers would not have claimed money that they are entitled to.

One of the main points that the Ministry of Justice report noted was that ‘In the financial services market claims management companies have made a significant contribution to increasing access to justice’.

For more information PPI law and rules, and to find out how you could claim up to £15,000 pounds in compensation, contact us here.

Posted by Shaun Edwards on 03 Aug 2010

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