PPI claim industry “too big to be left alone”

Covered mag, presented by Gocompare.com
  • | by Kristian Dando
Compensation for mis-sold payment protection insurance has turned into something of a cash bonanza for claims companies, when consumers would probably be able to get their money back just as well as themselves. But according to a poll of 2,000 people conducted by Which? and Money Saving Expert, a quarter of consumers are unaware that PPI claim firms take a cut of money for themselves, while less than half of people realise that they stand no better or worse chance of getting money back with a claims management firm than they would do without them. It doesn’t appear that PPI claimback firms are offering an experience to remember for the right reasons, either Over half of people (53 per cent) who have used a CMC to get back mis-sold PPI said they'd be unlikely to use one again. The biggest complaint was about value for money, with 37 per cent of consumers unhappy on this front. "I've been texted to be told I'm owed £3,000 PPI - though I've never had the product,” said Money Saving Expert editor Martin Lewis. “If people make a rational decision to give a huge 30 per cent of what they're due to a claims handling company in full knowledge they could do it themselves - I've no problem. Yet sadly very few are in that position. Many are persuaded under false pretences and the dire lack of regulation means it's tough to tell legit firms from the rest. "And worse, if things do go wrong with claims companies, it's a nightmare to get any redress,” he continued. “This is a billion pound plus industry - it's too big to be left alone."