25th April 2012 Written by Sean Dudley
Banks and credit card companies have promised to make the PPI claims process simpler and easier for members of the public.
Problems have arisen in the sector as many people who think they were mis-sold the payment protection insurance use claims management companies to aid their case, who then take a share of any compensation.
PPI issues have circulated the business and insurance world for some time now, and appear to be a problem major companies are reluctant to sort out.
Contractor Weekly reported as long ago as June last year that Barclays would be sending letters out to those customers who may be able to claim. But in March this year the Financial Services Authority ordered banks to write to customers in a succinct and ‘jargon-free’ way, and this was seen as a sign of progression.
This new turn has seen banks and credit card companies now standardise the PPI claims process, and to explain to customers why they do not need claims management companies and can deal with the bank directly.
These claims management companies have boomed since the PPI saga first came to light; companies can retain 25% of what is paid out, which is often in excess of £3,000.
£1.9 billion was paid out as PPI repayments last year by banks.
It is hoped this new step will encourage potential recipients of PPI payouts to contact their banks directly, without losing money to an unnecessary middle-man.
By Sean Dudley