Net widens to cacth rogue PPI firms
Published: 8 Feb 2013 14:300 comments
The team was set up by the Ministry of Justice's Claims Management Regulation Unit to monitor the hundreds of firms which deal with PPI and offer customers help to claim compensation from banks, building societies and others which mis-sold them PPI for credit cards and other financial products.
A new report from the unit, which has banned 103 PPI firms from business and warned 149 for poor practice in the last year, found the main causes for consumer concern were: misleading marketing, high-pressure selling, poor complaints systems and unclear fees.
The majority of complaints received by the unit relate to PPI claims management companies - 2,405 of them between 2011 and 2012 - which has also strengthened its specialist team to deal with demand.
Head of Claims Management Regulation, Kevin Rousell, said: "The mass mis-selling of payment protection insurance (PPI) has seen complaints against claims management companies soar.
"As this report shows, we won't tolerate firms that break the rules and we have shut down or warned more than 252 companies dealing with PPI claims in the past year. As part of our continued crackdown we are expanding our compliance work to ensure even more rogue companies clean up their acts or face closure."
He added: "We would advise consumers to consider whether they need to use a claims management company to make their claim. Companies can help them - but they may well be able to make the claim on their own."
In a drive to further improve the industry, the team will be revisiting the companies who have received official warnings - those that haven't addressed poor practice a total ban from the business.