As of April 2018, all PPI claims companies are required to put a cap on their service fees. What will this mean for them and for their customers?
While the Financial Conduct Authority (FCA) is busy promoting the PPI deadline, a vital piece of news regarding PPI companies was announced by the government in late November.
For over a year, there have been discussions about putting a cap on the fees charged by claims management companies. A decision has finally been made and as of April 2018, all PPI claims companies must cap their service fee to 20% +VAT.
For a PPI claims company like us here at Canary Claims, this update of ruling will have little effect. We already offer a low PPI service fee of only 18% including VAT, with no upfront charges, as part of our dedication to getting you a substantial PPI payout that you are owed.
For other PPI claims companies, this will have a dramatic effect, as some charge nearly 40% for their services. We encourage people not to let this news put them off making a claim until April. As ever, choose your PPI claims company carefully, finding one that will offer you the very best service and fee.
Read below to find out exactly what the PPI claims company fee cap will mean for you.
What are the Benefits for Customers Wanting to Claim PPI?
For years, many PPI claims companies have charged people high fees for their services, some taking over 40% of the final offer from the bank. As of April, though, this will be coming to an end. All companies will have to offer fees lower than 20% (not including VAT) and not charge any upfront fees. For full terms and to read about the new regulations, visit the Gov website.
For customers wanting to make a PPI claim before the upcoming deadline of August 2019, this is a massive help. Customers will no longer have to worry about being charged more money for making PPI claims with a company.
What Will Happen to PPI Claims Companies?
This will have a huge impact on some claims management companies. For some, this dramatic cut in their profits could result in a dramatic loss for the business. In addition to the fee cap, is also looks like there will be a ban on cold calls, which will be a joy to many people’s ears.
For those PPI claims companies who are already offering low service fees and no upfront fees, the change won’t make too much difference. However, each claims company will have to prove their record for impeccable customer service and great results.
For those PPI claims companies that don’t want to lose too much money, they will still price their services at the highest possible fee.
Should You Use a PPI Claims Company?
PPI claims companies want to make PPI claims as stress-free as possible. This is why they offer the service to make a PPI claim on your behalf. If you’re busy or can’t find your paperwork, then using PPI claims companies is the perfect solution. We’ve even got a PPI calculator for you to discover just how much money you could be owed.
Don’t wait until April for the fee cap; use a PPI company who offers a low fee right now. Canary Claims offers an incredible fee of only 18% including VAT, with no upfront costs and a no win, no fee policy. With a track record of nearly a decade making PPI claims, it’s the right choice to make.
Canary Claims offers one of the lowest fees for PPI claims: only 18% including VAT and on a no win, no fee policy. We want you to receive any money you are owed and are ready to hear from you today. Contact us online or call us on 0800 634 8668