PPI, Payment Protection Insurance has been big news, with companies normally offering personal injury and industrial injury jumping on the PPI bandwagon, left right and centre. However this week the government has announced that as from 2013 the legal ombudsman will be responsible for complaints, meaning that consumers who have been provided poor customer service could be awarded compensation of up to £30,000.
The companies offering to make claims for miss-sold payment protection insurance, take a percentage of the compensation they receive on behalf of their customers, usually on a ‘no win, no claim’ basis, however their have been several claims that these companies have been asking for money up front and that they have been making false claims to customers.
The Ministry of Justice, MoJ’s annual report from 2011-2012, stated that it had cancelled or warned 400 claims firms in the year to March 2012, and that a staggering 93% of the complaints were about financial claims firms.
The new changes in 2013, which will be enforced by the CMRU, Claims Management Regulation Unit, will change the way in which these companies are regulated, getting rid of bad practice within the industry and protecting consumers. This is potentially great news for consumers.