Who Regulates The Payment Protection Insurance Claims Market in UK
With more and more bad publicity surrounding Claims Management Companies that operate in the ppi claims market it is only a matter of time before people start to complain about the fees they have been charged for the service.
Many organisations such as the Financial Ombudsman, FSA and may other reputable news have been reporting how much claims management companies will make in the next year which will no doubt lead to complaints.
So where do people go to make their complaints if they feel they have been over charged and what can be done about it?
If you feel you have been over charged because you paid 25% or more then the first place you need to complain to is the company that charged you the amount in the first place. They have a duty to deal with your complaint and respond in a timely manner if you are not satisfied with their outcome them you have the right to complain to the regulator.
The Ministry Of Justice is responsible for the regulation for claims management companies that operate in the ppi claims market and if the bad publicity continues I can see them being overwhelmed by the amount of complaints they will receive.
The unfortunate thing for consumers is that the Ministry of Justice can only make recommendations to the claims companies but cannot force then to pay compensation to consumers although they do have the powers to review their licence.
The other thing that consumers need to be aware of is that claims management companies do not require professional indemnity insurance so if they stop trading then they have absolutely no chance of getting any form of compensation for being overcharged for the service provided.
So if you feel you have been overcharged I would suggest you get your claim in today before these companies disappear or cease trading as if that happens you will have to accept the amount you have paid them as final.
What we would say to all consumers is there is an “unfair term” that could be applied to the contract as a point of law and we would encourage anyone that has paid 25% or more to consider this option.
Any company that charges an unreasonable amount runs the risk of having an unfair term in their contract and in my opinion having processed hundreds of missold ppi claims any more than 15% is an unreasonable amount based on the work involved in a ppi case.
Charging fees for ppi cases is no different to a solicitor, financial advisor or accountant charging their fees for the work they undertake for you and all their fees have to be accountable in hourly rates, so why should the claims market be any different?
If a company charges you £100 per hour then they have to justify that rate without being unreasonable and this is where the unreasonable test would be examined by a court.
Don’t put up with being overcharged by these companies that want to charge you 25% and above take action now and ask for a refund down to 15% or submit a complaint to them and the Ministry of Justice saying you have been overcharged for the service you received.
Don’t think about it if you have paid too much for your ppi claims to be dealt with get your complaint in today.