The truth about claims firms
- 11TH JUNE 2007
Payment protection insurance (PPI) is undoubtedly an excellent product to have on side in this world where absolutely anything can change from day to day. However, for the millions of people that claim to have been mis-sold a policy, it simply provides a major headache. Existing high street bank and lender’s policies were actually difficult to claim on, did not suit the vast majority of policyholders and did not represent good value for money.
As a result of the recent furore regarding mis-sold payment protection insurance policies, millions of individuals have put in claims in order to recover their premiums and the first successful claims are beginning to filter through.
However, individuals that have made claims through firms that boast no-win no-fee will find that a large chunk of their compensation will be payable for the firm’s services, with some charging as high as 25% of all successful claims.
Simon Burgess, Managing Director of the ethical British Insurance, strongly recommends that individuals looking to claim stay away from such companies and instead go through the financial services complaint route. 'We have over a hundred individuals contact us for help and advice. Without exception we have advised them all to take their case directly to the Ombudsman Service.'
Burgess’ recommendation of seeking to claim via the Financial Ombudsman Service FOS will no doubt provide the best course of action for the majority of individuals in future.
