Working together with banks and regulators to make PPI claims easier and put unscrupulous Claims Management Companies (CMCs) under the microscope
MoneySavingExpert.com and Which? have joined forces for the first time to increase awareness of how easy it is for consumers to reclaim mis-sold Payment Protection Insurance (PPI) for free and to tackle head on the unscrupulous CMCs who exploit consumers wanting to claim back their money.
There is still over £5bn in mis-sold PPI still to be claimed, so the stakes are huge.
MoneySavingExpert.com and Which? will:
- Call a ‘PPI Summit’ on Monday 23rd April with all the major banks and credit card providers and the financial regulator, who have all agreed to attend. The aim is to get all parties working together to help people get back the money they are owed and help restore trust in the PPI claims process. A separate meeting will be arranged with representatives of claims management companies.
- Launch a radio advertising campaign to raise public awareness that they can easily reclaim for free.
Millions of people have been mis-sold PPI, but up to a billion pounds has already gone to claims management companies. Many consumers don’t realise there are simple, easy to follow steps to reclaim for free.
With an average payout of £2,750, and CMCs taking a fee of 25% plus VAT as standard, consumers could pay £825 for something they could easily do themselves.
MoneySavingExpert.com’s Martin Lewis said:
“We’re at crisis point now. There’s over £5 billion of PPI to be given out but, scarily, almost £2bn of that could end up in claims firms’ coffers, rather than people’s pockets and often all these firms do is send out similar template letters to the ones we give people for free.
“Worse still, the huge cash generated means their adverts are everywhere. That’s why Which? and MoneySavingExpert.com, who together have helped thousands reclaim PPI for free, are teaming up to get a simple message out: you don’t need to pay to reclaim, you can do it yourself and keep all of your cash for free. In most cases, it’s easy.”
Which? executive director Richard Lloyd said:
“It’s encouraging that the banks are going to work with us to help put this situation right and help their consumers reclaim mis-sold PPI.
“We want to see real action to make it as easy as possible for people to reclaim their money. And we need the Government to speed up regulation of claims management companies.
“It’s a scandal that too many CMCs have been ripping off consumers who don’t realise there are simple steps they can take to claim back their money themselves. We’re saying to people today – don’t get robbed twice.”
MoneySavingExpert.com and Which? have free on-line resources to help people reclaim mis-sold PPI.
Notes to Editor
1. An audio file of the advert to raise public awareness on reclaiming PPI is available for download from www.moneysavingexpert.com/ppiadvert
2. A full attendee list for the Summit will be released ahead of the Summit.
3. Both Martin Lewis, MoneySavingExpert.com and Richard Lloyd, executive director of Which?, are available for interview.
4. If you think you were mis-sold PPI, visit which.co.uk/ppi or moneysavingexpert.com/ppi to claim it back for free.