A Which? survey of over 2,000 people has found that 25% of people looking to claim over PPI mis-selling weren’t aware that claims management companies (CMCs) take a fee (usually 25%+VAT).
Only 49% knew that using a CMC would be no more successful than making the claim themselves.
Just over a quarter of people said that the main reason that they would use a CMC, if they were to make a claim in the future, is that they would not know how to make a claim themselves.
Which? claimed that 53% who have used a CMC to get back mis-sold PPI said they’d be unlikely to use one again, with the biggest complaint (37%) being about value for money.
These findings come ahead of a PPI Summit being held today with all the major banks and credit card providers, regulators and the Financial Ombudsman Service.
The aim is to get all parties working together to help people get back the money they are owed and help to improve the PPI claims process. A separate meeting with representatives of claims management companies will follow.
Richard Lloyd, Which? executive director, said: “This new research shows that many people don’t realise there are simplee, easy to follow steps to reclaim their money for free and so they’re turning to claims management companies, too often unaware they charge a fee.
“It’s encouraging that the banks are going to work with us to help put this situation right and help their consumers reclaim mis-sold PPI. It needs to be as easy as possible for people to get back their money. Many people have told us that free online claims forms, letter templates and helplines would help them to make a claim themselves, so we want to see action.”