Claims management — what exactly does this term mean?
To make a claim about something is to make a case to an organisation or company and complain about the service or product provided. The aim is to gain a refund or compensation. The best example is PPI claims. Thousands of consumers have made a case to their banks for being mis-sold Payment Protection Insurance (PPI). Many customers were sold the insurance without being told the full terms and conditions or were told it was a compulsory product.
The claims process involves contacting the bank or lender with evidence of the mis-sold insurance and stating how it was mis-sold. To date, it has resulted in over £32 billion refunded to consumers. The Financial Conduct Authority (FCA) has set a deadline for all PPI claims to be submitted. The cutoff date is 29th August 2019.
Claims management is the management of these various types of claims. Companies who work in claims management handle large volumes of these compensation cases on behalf of clients. Other forms of claims include mis-sold mortgages, flight delays, and personal injury. A claims company will handle one or more of these types of claims.
Effective claims management means handling and resolving cases for clients. To do this, companies will need excellent claims management software, such as LogiClaim. This software allows companies to update customers automatically and keep an accurate record of each claim.
What is a Claims Management Company?
A claims management company deals with any type of consumer claim. The high volume of mis-sold PPI meant a lot of new companies formed to deal with these claims. However, many companies were not upfront with clients about their fees. In some of the worst cases, companies would charge a customer before it undertook any work. Many clients did not see their money again or receive a refund.
As such, there is now more stringent regulations for PPI claims companies and only a handful of the best companies are left to manage claims. Those still working on behalf of customers to make a PPI claim will comply with all regulations and provide the following to customers:
- No win, no fee policy — A company will only take a cut of the compensation if a claim is successful. No money will ever be paid upfront by the customer.
- Charge no more than 24% (inclusive of VAT) — This is the maximum amount that companies can charge consumers for successful claims. Most companies charge this amount. But, you will find a select few who offer below this price without compromising on the quality of service.
- An itemised bill of the work performed — Many rogue PPI claims companies would take an initial payment over the phone before starting any work. Now, however, companies must send a full itemised bill to the client, outlining all of the work done on their behalf.
All consumers are able to check the authorisation status of the business by looking at the Claims Management Regulator website.
Claims management is an important process and companies have helped thousands of customers receive a refund. Although it’s possible to make a claim on your own, using the services of a company can make it easier and less stressful.
Logican works with the best claims companies by providing highly effective and claims software. Find out how to make a PPI claim with a claims company.
