PPI Claims

PPI Claims, Claims management companies have pocketed up to £5bn of consumers’ compensation for mis-sold payment protection insurance, according to estimates from Citizens Advice.

The charity, which analysed some previous figures from the Financial Ombudsman Service (FOS) to make its projections, also carried out consumer research suggesting that nearly one third (28pc) of people who have used a claims management firm felt under pressure to pursue a claim.

Nearly two-fifths (39pc) of people who had used a claim firm said they were not aware they could have made the claim themselves, according to a survey of more than 5,000 Britons.

Meanwhile, almost half (47pc) of people who used a claim firm said if they had known about the free help available they would not have used the firm.

Figures released by the ombudsman service showed that it took on a record 575,836 new complaints from consumers about financial firms in 2013, up by over one third (38pc) on the previous year.

Of the cases referred to the ombudsman in the second half of last year, three quarters (76pc) were about PPI.

Claims management firms will often take around one quarter of any PPI compensation payout, but consumers can make complaints directly for free.

Template letters that people can use to complain are available on various websites, including the FOS website and consumer help website MoneySavingExpert.com.