| Many financial products have been mis-sold through | | | | accusations back in the face of the claims companies, |
| the years from endowment policies to accident | | | | saying that they often use template letters, which do |
| claims and, more recently, there have been bank | | | | not truly reflect the issues raised by the claimant. |
| charges. Lawyers make hefty profits along the way | | | | Consequently the bank has to write back requesting |
| using their catchy slogans - no win; no fee - where | | | | more details of the case, which delays the whole |
| there is blame, there is a claim. But of course they | | | | process. They would prefer the claimant to prepare |
| are not challenging the banks through the goodness | | | | their own case, as the presence of third parties |
| of their hearts - Oh no; there is a fee to pay. | | | | confuses the issue. |
| Typically, they charge 25 per cent excluding VAT, | | | | Insurers and banks have had strained relationships |
| which is paid out of the compensation awarded. You | | | | with the majority of claim management companies |
| can save yourself these fees by preparing and | | | | over the years. A spokes person from the Abbey |
| submitting a claim yourself, and even if it is rejected | | | | maintains that most people can submit their own |
| you can approach the Financial Ombudsman Service | | | | claims by contacting their insurer or bank direct. 30 to |
| (FOS). However, it is time consuming and you may | | | | 40 per cent of your compensation is taken by the |
| think that a professional can submit a more | | | | company submitting the claim, often for doing very |
| persuasive claim and that you will be awarded more | | | | little, he said. |
| compensation at the end of the day. | | | | A Director of money supermarket, the price |
| There are many tricks of the trade which the | | | | comparison site, said that the popularity of claims |
| untrained amateur claimant is not aware of. Rejection | | | | management companies handling PPI mis-selling could |
| letters issued by insurers and banks will give, what | | | | lead to frivolous claims being submitted. They tend to |
| appear to be, plausible reasons for rejecting a claim. | | | | encourage claimants to proceed with claims which |
| However a specialist lawyer working for a claims | | | | have very little substantial evidence to back them up, |
| company will identify these excuses and pursue the | | | | he said. Claim management companies deny these |
| claim with renewed vigor. Their course of action may | | | | accusations, saying that they vet their claimants very |
| mean submitting the claim to the FOS and even if it | | | | carefully and do not prepare frivolous or bogus claims. |
| is rejected an appeal can be lodged on behalf of the | | | | He continued by saying that policyholders should not |
| claimant. | | | | dispense with their insurance when it was most |
| However the large number of claims being submitted | | | | needed. They should ask themselves whether they |
| to the FOS has led to long delays of up to 10 | | | | could do without their insurance if they became |
| months before a case is resolved. The situation is | | | | unemployed. Cases have been reported where |
| exacerbated by the way insurers and banks are | | | | people have canceled their PPI only to lose their jobs |
| dragging their feet. | | | | soon afterward, so it is prudent to try to keep your |
| A high street Building Society has thrown these | | | | cover in place. |