A number of PPI claims management comnpanies have sprung up in recent months amid some criticism of their practices.
In just the same way that it is important that you read the small print of PPI policies, it’s important to read the samll print of PPI claims companies.
Claims management companies should be authorised by the Ministry of Justice and are obliged to comply with strict rules as to their conduct such as no cold calling of customers. You should check that a claims management business is authorised by the Claims Management Regulator before enetering into any agreement with them. You can search for authorised businesses at http://www.justice.gov.uk/about/cmr.htm The register will tell you which businesses are currently authorised and which businesses have had their authorisation suspended or cancelled, and are therefore no longer authorised to handle claims.
Many businesses offer what is known as a “No Win No Fee” service costing between 12% and 25% + VAT of the total compensation obtained. This charge may be levied not only on what you receive as a refund but also on any reduction in further repayments. It is important that you read and understand the charges carefully before entering into any agreement with them.
Remember that many claims are very straightforward and can easily be handled by the customer.