If you’ve considered whether or not you should make a claim for mis-sold PPI, you may have asked yourself how much PPI claims companies charge. Continue reading to find out.
The Payment Protection Insurance (PPI) scandal emerged as a result of PPI being widely mis-sold to consumers. As many as 64 million policies were sold during the scandal, many of which are expected to have been mis-sold. Banks and lenders have since put billions of pounds aside to cover the influx of new claims they anticipate will be made before the deadline set by the FCA — August 2019 — arrives.
PPI Claims Fees and Charges
When searching for a reputable PPI claims company, you must check the transparency of its fees. Unfortunately, the reputation of the claims management industry has been slightly tarnished, thanks in no small part to unscrupulous companies scamming customers and taking huge upfront fees, with little to no work to show for it.
Before now, many PPI claims companies charged consumers fees as much as 40% + VAT on successful claims — often written into the small print and not explicitly communicated to consumers. In an attempt to clamp down on rogue PPI companies, the Financial Conduct Authority (FCA) now regulates all claims management companies. There is also now an interim cap on PPI fees, in effect since the 10th July 2018, of 20% + VAT. This aims to prevent the extortionate fees charged by many companies. The most reputable of companies already charged significantly below this amount and operate a no-win, no-fee policy, meaning you only pay a fee in the event that your claim is successful. But, some companies may charge a cancellation fee after the 14-day cooling off period, always check the terms and conditions.
When researching PPI claims companies, it’s vital to ensure that they are transparent in the fees they charge. You should never be paying more than 20% + VAT. This fee cap could see many PPI claims companies struggle to stay afloat, so while it will mean you have a smaller pool of companies to consider, it also means competition among surviving companies will be high. It will become even more important to look beyond marketing tactics to choose a company experienced with handling a large value of claims efficiently so that you too can ensure your claim is handled with professionalism and will secure the result you are looking for.
Tips for Choosing the Best PPI Claims Company
The aim of a PPI claims company should be to make the PPI claims process as easy and stress-free as possible. Choosing an effective PPI claims company that offers an affordable fee can be difficult and you must be cautious when making your choice.
Spend time researching and understanding your options before deciding on a PPI claims company to work with. Check reviews of customers that have used the claims company to gauge the level of service that is provided. It’s vital to choose a company that operates professionally and will do everything in its power to secure a positive outcome. Get this wrong and you may find yourself appealing a rejected claim, meaning you’ll have to wait even longer for a resolution — this could be problematic with the upcoming PPI deadline.
Many PPI companies use claims management software to cope with their workloads. This bespoke software streamlines processes, allowing businesses to effectively manage their cases. Logican’s claims software automates the claims process, by prompting clients to return completed forms and chasing banks for acknowledgement letters, in order to bring claims to a rapid, successful conclusion. PPI claims companies that use such software are able to focus on delivering a quality service to their clients, resulting in a positive outcome for you.
Logican works with the best PPI claims companies to provide claims management software which makes the PPI claims process more efficient. Start your claim today to ensure you don’t miss out on your chance of receiving a refund.
