In April, the Financial Conduct Authority (FCA) began regulating PPI claims companies. This change means new rules and standards for companies to adhere to.
After the Payment Protection Insurance (PPI) mis-selling scandal, a handful of claims companies began operating to deal with the myriad of individuals needing refunds. However, many of these firms were created as a way to make money and didn’t care about the service they provided to customers.
Companies cold-calling thousands of people, charging hefty fees and demanding upfront payments caused many individuals to be wary of claim firms. With this in mind, the FCA wanted to create more stringent regulations to ensure claims companies are fairer to customers and to boost trust between customers and firms.
Over time, the number of rogue PPI claims companies has decreased, leaving only the very best operating within the market. With less than four months remaining until the PPI deadline, the remaining claims companies are hoping to work with many more customers before the cut-off date.
Remember, if you haven’t yet processed a PPI claim, you must do so before 29th August — the official cut-off date set by the FCA. It’s estimated that over 60 million PPI policies were sold in the UK — meaning some individuals had more than one policy.
New Regulations for PPI Claims Companies
Previously, claims companies were managed and registered by the Claims Management Regulator. But, the new move is a way to increase professionalism within the industry and drive up standards.
As of 1st April, the FCA regulates all claims management companies. All companies that wanted to continue operating after April should have applied for temporary authorisation by the FCA. More than 900 companies did so. The FCA will now undertake the task of checking that these companies meet the standards required. These firms could handle anything from PPI to personal injury.
The move to FCA regulation brings about new rules for PPI claims companies. The rules are intended to give customers a fairer experience and explain fees and services more clearly.
Some of the new requirements include:
- Providing clear information about the fees involved when using the services of a claims management company.
- Outlining the services provided before the customer signs a document.
- Explaining to customers any free alternatives to using a claims management company, such as the Financial Ombudsman Service.
- Recording customer telephone calls and keeping them for up to a year.
These rules work to enhance the relationship that customers have with claims companies. Customer trust in claims companies is low, but the FCA hopes it will improve and people will be left with a few companies that offer the best service.
At Canary Claims, we are working hard to ensure we meet the industry standards and requirements. As a well-established PPI claims company, we have always put customers at the forefront of the work we do.
Finding a Reputable PPI Claims Company
Many individuals choose to use a PPI claims company if they can’t be bothered or don’t have the time to submit a PPI case themselves.
If you want to find and work with a trustworthy and experienced PPI claims company, these are some of the key features to look for:
- FCA-authorised — All the companies that applied for temporary permission are listed on the FCA website. Check a company is listed before working with them.
- Established for several years — A good claims company will have been working in the industry for a while and know how to submit a strong claim. Having operated for a while, it will also know the best processes to research old policies and all the relevant banks and lenders.
- Good reviews — Reviews are a great way to find out the experience of previous customers. Check the testimonials on the website and from third parties.
- Low fee — All companies must now charge less than 24% (inclusive of VAT). But, some companies, such as Canary Claims, offer below this amount. This means you will pay the company less for their services and receive a greater amount of your refund for the same amount of work.
Working with PPI Claims Companies before the Deadline
All individuals wishing to work with a PPI claims company before the impending deadline on 29th August will need to act soon. As the deadline approaches, some firms may turn their attention to other types of claims and will not take new PPI cases. Some companies may have already stopped due to the latest standards and imminent deadline.
It’s possible to claim PPI yourself, but if you don’t have the time or don’t want the hassle of finding the paperwork and contacting the bank, you can contact a reputable PPI claims company.
A claims company can research any evidence of old PPI policies and contact the relevant bank or lender on your behalf. If the bank is slow to respond, the claims firm will chase the bank and seek a response as soon as possible.
If the claim is rejected, the claims company can also refer the case to the Financial Ombudsman Service (FOS). It’s important to note that claims at the FOS can take several months to be resolved and must be submitted within six months of the result from the bank.
We urge everyone to check for mis-sold PPI policies as soon as possible and act now before the impending deadline. You might be surprised at how much you could receive from your bank.
Operating since 2005, Canary Claims is the best PPI claims company to handle your case before August. We charge just 15% + VAT (18% total) on successful claims and are based in London. Claim PPI with us today.