West Dunbartonshire Council’s Trading Standards Section is urging local people who were mis-sold Payment Protection Insurance to cut out the middleman and keep every penny they are due when claiming their money back.
Earlier this year, the courts made a ruling that anyone who was mis-sold Payment Protection Insurance (PPI) can reclaim their money. It has been estimated that the total payout due to UK consumers could run to several billions of pounds, with individual claims of £3000 to £5000 not uncommon.
PPI is a form of insurance designed to cover repayments in the event of an accident, sickness or unemployment. Anyone who has taken out a loan, mortgage or bought goods on credit is likely to have been offered it. However, due to mis-selling, many customers took out a policy that was not suitable for them – for example, protection against unemployment being sold to someone who was self-employed or about to retire – or even did not realise they had taken out a policy at all.
A number of firms have come onto the market offering to assist consumers with their claims – but the catch is that they will charge commission. Trading Standards is advising that in most cases it is easy to make the claim yourself, ensuring that all the money due goes directly to you.
Councillor Craig McLaughlin, spokesperson for Corporate Services explained: “The chances are you’ll probably have heard or seen adverts for claims management companies (CMCs). The services they provide are perfectly legitimate, but most will charge you a percentage of your PPI settlement fee, often 25 to 30 per cent, so that’s at least £750 of your money if you are due £3000. In most cases, making a claim is straightforward. Help is also available from various toolkits provided by consumer organisations such as ‘Which?’, and I would urge consumers to do this and keep every penny for themselves.”
The independent finance industry regulator, the Financial Ombudsman Service (FOS) has stated that consumers who make a claim by themselves are just as likely to win their case as those who go through a CMC. Their website also provides advice to consumers on how to make a claim, and how to appeal to them if your claim is not dealt with properly (www.financial-ombudsman.org.uk ).
Trading Standards Team Leader Tony Cairns added: “Some more complex cases can benefit from the assistance of a specialist claim firm or a solicitor, but this is the exception rather than the rule. Often a simple phone call or letter is enough to lead to the claim being settled in full and with all of the money going straight to the claimant, so why pay unnecessary commission? The template letters and advice available online are very helpful and easy to follow. Anyone who would like more information or needs particular assistance can contact us.”
Any West Dunbartonshire resident who wants further advice on PPI claims should call 01389 738290 and ask for Trading Standards PPI Advice.
