Crackdown On Firms Making Fake PPI Claims, Says Leading Reclaims Company Missoldppiclaims.info
PPI Claims Companies that knowingly make fake claims for clients are being rooted out by the Ministry of Justice (MOJ) in a crackdown on unscrupulous firms, says claims company PPI Reclaims.
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December 8, 2012 (FPRC) -- The September issue of the MOJ’s bulletin detailed instances it had found businesses could not substantiate PPI claims they had submitted on behalf of clients, and in many cases it transpired the clients had never had a PPI policy at any time in the past.
In the wake of lenders massively increasing their compensation funds and resources to cope with recent surges in PPI claims, in August the MOJ announced the launch of its new PPI team tasked with rooting out companies that are submitting false claims.
The bulletin stated: “If you are unable to provide evidence that the allegations have come from your client, then you are acting irresponsibly. We have already warned a number of businesses about this breach of the rules and will continue to take action where this type of conduct is identified.”
The bulletin went on to warn readers about a claims business based in Spain acting illegally under the names of Freedom Marketing and Easiclaim.
Alan Lakey, Financial Services partner at Highclere, says: “Many of these companies are introducers or are based offshore so they are unregulated. The rules have to be changed so the Government can tackle these problems.”
In the twelve months between March 2011 the number of claims companies within the financial services sector increased by 3%. This has gone hand in hand with an increased presence by the MOJ, which carried out 150 audits and visits to companies over the same period. Over 400 firms in total received warnings, suspensions or had their authorisation to operate in the financial sector revoked.
A spokesperson from leading PPI Reclaims Company, Missoldppiclaims.info said: “The recently submitted annual accounts of Lloyds Banking Group and Barclays showed both have increased their compensations funds by £1bn and £700m respectively to take account of recent rises in PPI claims. It is likely that a proportion of the claims both banks are dealing with will be false claims from unscrupulous claims firms. Unfortunately, banks still have to spend money investigating every claim, even the false ones, which for nationalised banks like the Royal Bank of Scotland means the taxpayer is picking up the bill.”
“The amount of people looking to claim back PPI from lenders have been steadily increasing over the years because a lot of unscrupulous firms – many of which are not even based in the UK – are attempting to extract what they see as easy cash from lenders.”
Prior to the MOJ’s warnings however, some consumers had reported being forced to agree to submitting false claims by debt management companies.
“Some consumers sought help from a debt management company only to be pressurized into making a false claim because it was too late to pull out after signing a contract,” said Missoldppiclaims.info. “Often the individual had never had a PPI policy and felt bad because they knew it was a blatantly dishonest move by a company that was supposed to be helping them.”
Send an email to Dave Johnson of Mis Sold PPI Claims
0800 043 2027
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