The term seems to be mentioned frequently on adverts, but do you know what a no win, no fee PPI claim is?
Payment protection insurance (PPI) policies were mis-sold across the UK alongside millions of credit cards, loans and mortgages. The Financial Conduct Authority (FCA) estimates that as many as 64 million policies were sold between 1990 and 2010. This means more than one policy per adult.
Millions of people are yet to make a claim for mis-sold PPI so the FCA introduced a deadline to encourage people to do so. Everyone must submit their PPI claims before 29th August 2019.
If you’re looking to make a PPI claim before the upcoming deadline and are searching for a reputable claims management company to handle your claim, you’ve likely come across the term ‘no win, no fee.’ Here, we explain what this term means and all the critical information you should ask a claims company that offers this policy.
What is a ‘No Win, No Fee’ PPI Claim?
The premise of no win, no fee may seem simple. But, it’s important to understand the other terms and conditions you’ll be signing up for. No win, no fee means you don’t pay any money upfront. You only pay the company if they win your PPI case.
If the bank doesn’t pay out, you won’t need to pay the company for their services. It’s an excellent way to make a claim because you don’t need to worry about paying the company if your claim is unsuccessful.
It’s important to note that cancellation charges may apply after the 14-day cooling off period. Always check the full terms and conditions outlined by the company before signing any agreement.
You should never pay a company upfront before they have done any work for you, even if they say they know you are due a sum of money. Only the bank can decide this. Many consumers have been caught out by rogue PPI claims companies paying upfront fees before any work has been done.
New regulations also mean that companies cannot charge a client until the outcome of a PPI claim has been decided. If a company is charging you before your claim has been made, you can report them to the regulator.
If you work with a no win, no fee PPI claim company, it’s critically important to find out how much you will pay them if you claim is successful. The fees that companies charge varies considerably. Always choose one that charges a low fee and find out the cost, including VAT. After July 10th 2018, all claims company fees will be capped at 20% + VAT.
As well as this, it’s important to know how much you will pay if you are making a PPI claim against a bank who you currently have an outstanding debt with, for example a loan or credit card. The bank may automatically take the PPI refund and use it to pay off the debt you owe them. If this happens and you don’t see the money, you may still have to pay the PPI claims company with the fee for your claim amount. Find this out before using the claims company.
Finding the Best No Win, No Fee PPI Claims Company
At Logican, we create software for the best PPI claim companies. It allows companies to process claims more efficiently and keep track of each case, even during this extremely busy period for the industry.
We know which companies you can trust to manage your claim. Refer to our guide to finding the best no win, no fee PPI claims companies to help you decide which company will be able to handle your claim.
Start your claim as soon as possible before the PPI deadline. To date, the banks have paid over £30 billion to consumers, so it’s worth checking all previous paperwork for evidence of mis-sold PPI.
Logican provides software for some of the best PPI claim companies with no win, no fee services. Our PPI software allows companies to seamlessly deal with PPI claims in the run-up to the deadline.
