PPI Claims Process Now Under Stricter Control, Says Claims Management Firm Missoldppiclaims.info

Unscrupulous claims firms hoping to make a quick buck at the expense of customers are now facing strict new rules to prevent them from doing so, says claims management firm Missoldppiclaims.info.

Any claims management company in England or Wales wishing to represent a customer in a claims process must obtain written permission in the form of a contract before they do so. Currently, a firm could go ahead with a claim on the basis of a verbal agreement following a cold call or text without having to make the customer fully aware of their fees. Only later when a large amount of money is snatched following a successful claim does the customer realise the extent of the fees, in some cases up to 30% of the amount recovered from the lender.

The new measures, which will be brought in during the summer, will stop this by forcing claims firms (such as those involved with personal injury or PPI) to put their fees in writing as part of a contract with terms and conditions, and then obtain a customer’s consent with a signature.

The Ministry of Justice has cracked down on unscrupulous firms cold-calling customers without permission, stripping some 260 companies of their licenses. Many claims firms use cold-calling to find business on the back of TV, newspaper and internet advertising, encouraging people to make claims for personal injury or other losses. PPI mis-selling claims have been a particularly lucrative area for many unscrupulous companies, with tens of thousands of people making claims that has resulted in the UK banks having to put aside £15bn to compensate customers.

Richard Lloyd, executive director of consumer group Which?, said: “Although these new rules are a step in the right direction, we think the government should be much bolder in cleaning up the claims industry. Upfront fees should be banned and those in charge of claims firms properly held to account for bad behaviour, with hefty fines imposed, licences revoked and individuals barred from running CMCs if they are found guilty of breaking the rules.”

The changes are not the only ones being made by the Ministry in an attempt to make the industry more professional. Consumers with a complaint can now go to the Legal Ombudsman to have their case heard and obtain help finding a resolution and compensation if it’s justified.

A spokesperson for claims management firm Missoldppiclaims.info said: “Efforts to make the industry more professional have been underway for the better part of a year now, and the Ministry has been making great strides in rooting out the unscrupulous companies. Those that have had their licences revoked make up around a tenth of the industry, and those that remain must now ensure the way they do business with their customers is fair and ethical.”

A Financial Health Service For Scotland

The long awaited ‘Financial Health Service’ for Scotland recently took a further step towards becoming a reality in April 2015 when the legislation was laid before parliament on 21 and 22 August. Independence referendum aside, the Accountant in Bankruptcy (AiB) has been pushing ahead with the Scottish Government’s plans for personal insolvency reform. This area of law has always been fully devolved to Edinburgh; hence, the Scottish Government has used its’ powers to make significant changes to personal insolvency since April 2008. This new Bankruptcy and Debt Advice Scotland (BADAS) Act is the last piece of the jigsaw, meaning that come April 2015 we should have a personal insolvency regime fit for the 21st century. Continue reading “A Financial Health Service For Scotland”

Beginners Guide To Life Insurance

Who really needs protection?

“Only two things in life are guaranteed…” A few of us have heard that saying before. In that sense I suppose you could answer all of us need some form of insurance to cover at least the cost of a funeral and we need to know how much this costs. However we normally find that people who have something to leave or someone to leave it to are the most in need of protection. To put it another way – Home-owners and/or those with children are those who are most likely to think about it. Now consider a 30 year old with a 25 year mortgage and 2 children age 1 and 3… And consider the same person 45 years from now – mortgage free with the children all grown up and flown the nest. Arguably both situations require cover but at two very different levels of cover. For the 30 year old the total is far greater than that of the 75 year old – Because circumstances have changed.

The trick to life cover is having the right level of cover in place when you die, now we don’t have a crystal ball so we don’t know when that will be – otherwise we would take cover out the week before right? The only way you can do this is to have regular reviews of your cover to make sure that you have the correct cover in place should the worst happen – Yearly as a worst case scenario. While the example above is extreme ends of the spectrum there are many things that could happen between now and the day you die – Promotion, redundancy, birth of children, marriage, divorce, separation, upsize the house, downsize the house all of which should/could result in a change in protection requirements.

PS: Death and taxes are the only things that are certain according to Benjamin Franklin if you hadn’t heard the saying before…

*Trusts are not regulated by the FCA but can form an integral part of your financial planning – without a will your family could wait up to 12-18 months (!) for the insurance to finally reach them after probate/confirmation (legal process). Talk to us about writing your insurance into trust – it may be the most important thing you do today.