Possibly, We Won’t Be Seeing More No Win No Fee Claims Companies?

I admit, a claims management company was invaluable for getting me the compensation I needed for a medical negligence claim. Indeed, they are very helpful, but they are turning out to be quite large nuisances especially in terms of cold calls or text messages. However, recent news suggests that claims handlers have a lower population today than during 2008 to 2011.

According to a government-sponsored research, CMCs have dropped in population by 50% in 2013. Authorities attribute this to the peaking of PPI complaints and £13.3 billion finally paid back to consumers from the current £25 billion PPI bill. This might also be due to the new independent medical board ensuring the quality of injury and negligence claims to rescue insurance companies from raising their medical premiums due to fraudulent claims.

No Win NoFee* compensation claim handlers had been the primary suspects for introducing fraudulent or non-existing PPI claims and injury compensation claims, namely whiplash. But according to the survey, most of the claims handlers succeed in 97% of all approved and existing cases for PPI claims and injury compensation.

It is possible that that spike in CMCs in the previous half decade was fuelled by consumer legal contempt against their banks. But then again, the UK has a “compensation culture” that will always help consumers, and help CMCs, gain legal ground and increase in population.

PPI Complaints Expected to Increase in Number

With more than a million complaints being handled by the Financial Ombudsman in the first half of 2013 and enduring 266,238 PPI complaints from September, the organisation expects more PPI complaints to come in by the following year. Experts also agree on the estimation.

The Lloyds Banking Group’s recent addition of £750 million for their PPI refunds is a significant factor for experts that more PPI complaints are expected by the financial industry for the following year. Lloyds currently has the largest half of the mis sold PPI refund bill, currently situated at £8 billion in total.

Experts also expect the other high street banks, RBS, Barclays and HSBC, to publish their third quarter financial results and add more to their PPI refunds. With increasing numbers of PPI complaints, the total PPI refund bill by 2014 is expected to exceed £20 billion.

The Financial Ombudsman said that a great chunk of the financial industry’s refund bill goes to administrative costs, namely the payment for handling contractors and to the FOS. The FOS charges £900 in total for every complaint for mis sold PPI respective of its bank.

If you are planning to make a claim, click here for more information about PPI claiming and legal consultation.

What You Need to Know About PPI Claims Management Companies

Although vilified by the financial industry and experts for advertising and mass marketing their services, PPI claims management companies are actually very useful if you know when to make use of their services. PPI claims management companies work under a no win no fee basis and take only a quarter of your refund for their service fees, if successful. But they are not miracle workers and here are some things to know about them.

1.    Works to Reclaim your Refunds

PPI claims companies are there to address all the paperwork and duties needed to reclaim your insurance policy. Most people say you could do this on your own and you could indeed. However, not everyone has the time and pleasure to review and address the details of their insurance policy. It can take an hour to process all your information by yourself and weeks of waiting for the results. Now think about your efforts when your bank rejects your claim.

2.    Does Not Force You To Work With Them

All claims management advertisements are not exactly self-serving; they only show you why they are necessary and how they can help you get your refunds. PPI claims managers do not force you to work with them. They can only show you what they can do, the successes they’ve achieved with previous clients and their knowledge base. Of course, do not work with claims management companies who may be scammers or continue to pester you with cold calls.

3.    Claims Regulation Number

The Ministry of Justice oversees all activities claims managers perform with their clients. If you decide to work with a PPI claims company, be sure to ask for their CRN. Most effective PPI claims companies have their CRN on their pages, such as the PPIClaimsCo website you could visit through this link.