Watch out for the PPI scam

Published by Johanna Gornitzki on 29 November 2011.
Last updated on 29 November 2011

If you’ve found yourself watching daytime television recently, the chances are you’ve seen an advert for how you can claim compensation for mis-sold payment protection insurance (alongside Stannah stair lifts and funeral plans).

And yes, if you’ve got a PPI policy you could well be eligible for compensation. In fact, millions of people have been mis-sold the product (designed to cover your earnings should you fall ill, have an accident or lose your job), as it was pushed by unqualified ‘bank advisers’ to many customers who would never have qualified to make a claim. These included retired and unemployed people who had no job to lose, the self-employed, and people with pre-existing illnesses.

Banks made billions in profits from these policies, with high commission charges alongside low claims rates (roughly just 20% ever paid out).

So it’s only fair that banks finally have to cough up for their greediness. But before you go ahead and make a claim, watch out for the vultures that are currently enjoying the compensation feast; the claims management companies.

Often referred to as ambulance chasers, these are the ones that are running all the ads on TV, sending you texts or calling you about your possible PPI compensation claim. And are they doing it out of love for you, the customer? 

Hardly. 

These firms are making a tidy profit. One called me recently about my potential PPI claim (I haven’t got a policy at all but apparently a lot of bogus PPI claims are being made – and mostly by claims management firms). I asked the sales rep on the phone just how much commission the company would take if my claim was successful. He reluctantly revealed that it was in fact, wait for it, 30%!

Seeing that the average payout for PPI complaints is around £2,750 (according to the Financial Ombudsman Service) that means these firms would make £825 on each successful claim – not bad. 

But do they have to put a lot of effort in? Not by the sounds of it. I had a meeting with the Financial Services Compensation Scheme (that deals with any PPI claims from insolvent firms) the other day, and it told me that any PPI claims made to it by claims management companies often lacked even the basic details, so it would have to chase the customer instead. 

So, a big chunk of commission for hardly any work. Not surprising then that around FOUR IN FIVE of all PPI complaints the FOS and the FSCS receive are made by claims management companies, and not individual customers. 

But the thing is that there is no need for a consumer to use a third party to make a complaint – each case will follow the same process, regardless of who is bringing the complaint. Additionally, the Ombudsman service is free, and so is the FSCS. 

It’s also fairly straightforward to claim compensation for PPI. If you think you have a valid claim, simply contact your lender and ask for a review. Banks have 21 days to appeal the decision. If they do not appeal – or if that appeal is unsuccessful – you can submit your complaint. If that doesn’t work, speak to the Ombudsman that will fight the case on your behalf.

In the words of the Ombudsman: "Why pay someone else to do it for you – when you're just as likely to win by doing it yourself for free?"

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Watch out for the PPI scam | Moneywise

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Suspicious phone call re PPI

I received a call from an Asian-sounding gentleman claiming to be from a Government Department, telling me that my PPI claim has been settled in the amount of 2,700 pounds. (Sorry, my keyboard seems to have gone wonky & I cannot type the pound sign). I was told someone would deliver a cheque to my door & I should provide photographic evidence, etc. I spelt out my postcode 3 times but he kept saying this is not correct. He then put me on to his "supervisor" who proceeded to advise that while private companies charged around 40% commission, the Government merely charged 10% in tax. So once I had paid the 270 pounds "tax", I would receive my cheque!!! As if! So I would urge people to be wary of these calls. The number I was phoned on is 0161 818 7999.

PPI

How can I find out about a possible PPI claim from a bank no longer in existence. I was with Northern Rock

PPI Scam

Just been called by a chap called "Michael" he asked me to call this number back 01173182439, he said I was eligible for a PPI claim and someone would call at the house with cash!! and after that I would receive a cheque for more money!!
He tried to say he was from a company called chargeback claims.

PPI SCAM

Just had same call from same number, did you receive any money was it a scam ?.

Ppi

Just had the same call it's a scam

JPS demanding payment for PPI

JPS demanding payment for PPI claim not followed up with information as did not trust them

Consumer Refund Service

Good morning. This company sent me a letter offering free PPI checks and it seems legit. Trustpilot reviews seem fine with the company taking quick response to a post from a non customer shouting "fake". Their service therefore seems legitimate but ... are they? I know you have letters etc to use but I do not have all records going back years so a company like this offering to do the leg work is attractive (as so many scams are).
Would you please let me know what you think.
Yours, very gratefully,
May

PPI company money claims 4 u ltd.co.uk

This company sounded very nice on the phone , low charge rates too, BUT beware with in the paperwork was a notification of charges if you stopped using them. This made be reluctant to sign the forms, ( I wanted to do a little research first) hence I did not return the paperwork, numerous phone calls- rejected, now to receive a poorly written letter saying I owe then £540 for breach of contract or face a CCJ! (what contract might that be, as I did not sign? Maybe a verbal agreement to a no win no fee offer, that I said I would look at- I don't think so) Called them, man I spoke to said the letter was worded badly he was sorry and would close the case. This is disgusting what if was elderly or not very savvy I'd be stressing now that bailiffs would be knocking at my door (as letter states).

PPI

A company keeps calling me saying that a company I had dealings with had been taken to high court and I am owed PPI if I paid solicitors fees I would get the money they have entered accounts to companies House and everything seems legit but as the saying goes if it’s too good to be true it probably is anybody else had same calls I did tell them I would pass there details on to fraud squad mike

My Claims Solved

What a horrible company backed up by the financial ombusman I was cold called asking if I had a mis sold pension I said I didnt know . They said they would look into it but made me do 90% of research and then charged me 33% even although I had told them to forget it halfway through due to me not having the time as daughter getting married I was then suddenly told I was due refund and had to pay them 33% of what was really my money I thought cold calling was illegal but NO help from ombusman said I should just be glad to get MY money all be it minus 33% NEVER NEVER USE MY CLAIMS SOLVED

ppi

Has anyone heard of CLAIMS ASSIST (BOLTON) LIMITED as they have called me about a ppi refund

Claim assist bolton

Yes my mum has had dealing with them, but she dOrsnt remember dealing with them, n we cannot find a phone number for them either.