Mis-sold PPI – Claim Yourself or Go Through a PPI Claims Company?
As the banks continue to pay out for their dishonest and deceitful ways, the debate rages over whether it is easier and more beneficial to claim for mis-sold PPI yourself or to use a claims company. Although there are benefits to both, there are also some major drawbacks.
Claim for Mis-sold PPI Yourself?
Numerous sources and financial experts have been advising people to claim for mis-sold PPI themselves. Claiming it is easy to obtain compensation; many experts (including Martin Lewis from MoneySavingExpert.com) assert that your PPI compensation is only one letter or call away. Their simple message seems to be, ““you don’t need to pay reclaim”.
Sounds good, right? So what’s the problem? In two words: the banks.
As the media has widely reported, there have been countless cases of banks lying to people once again by informing them that they are either ineligible for PPI compensation or by offering ridiculously low sums of money in phony “goodwill” gestures. Despite losing a 2011 court case, banks continue to put numerous obstacles in the way of claimants, relying on the claimant’s lack of legal knowledge to withhold money from them.
In another twist, banks have begun encouraging people to claim themselves through a series of advertising campaigns. This move is viewed with suspicion by a lot of people and rightly so. It seems that after having lied to mis-sell PPI in the first place, and then lying once again to avoid paying out, banks now want us to believe they have reformed themselves and suddenly begun caring about the public!
The fact that banks WANT us to do anything should set off the alarm bells immediately. As the old saying goes, “fool me once shame on you, fool me twice shame on me” – having been fooled once before, it is advisable to stop dancing to the bank’s tune.
Claim through a PPI Claims Company?
So, is the solution to go through a claims company? Not necessarily. That is to say, not all claims companies are the same. The recent PPI crisis gave rise to some bogus companies whose sole aim is to cash in on the financial misfortune of others. Whilst a professional claims company can bring a bank to task in a way that a lone claimant cannot, it is important to pick the right company.
Some points to look out for when dealing with a claims company:
- Companies that ask for upfront fees should be avoided – stick purely to companies that offer a no win no fee service.
- View the company homepage or the Ministry of Justice website to see whether the company is registered. Bogus companies are unregistered as they do not want to be regulated.
- Does the claims company make extraordinary claims such as guaranteeing a payout or claiming to process claims quicker than other companies? If so, avoid these companies as no company can guarantee a successful claim or a quicker rate of service.
- Does the company charge over 25% + VAT? Companies that charge excessive fees are not necessarily fraudulent organisations but they should be avoided nonetheless. Most legitimate companies charge only 15%.
Dealing with the same banks that have a history of deceitful practices, consumers need to take every precaution to ensure they are not deceived again. This is doable via the use of professional companies that have the experience and expertise to bring banks to task. Many consumers that have been previously fobbed off by banks have found that they were successful in their claim when working with a claims company. This is not coincidence. Rather, PPI claims companies are fully aware of rights of the consumer and thus aggressively pursue the claim with the bank. Extensive knowledge, considerable experience and an unrelenting attitude are the qualities that ensure claims companies succeed where individuals often fail.