Updated: Friday, 17th November 2017 @ 12:59pm

Three things you need to know about PPI claims firms

Three things you need to know about PPI claims firms

| By Yaakov Smith

So, you've been mis-sold Payment Protection Insurance (PPI) and want to claw back your cash.

You're probably wondering whether you can do it on your own, or if it’s best to use the services of a specialist claims company and their PPI claims management software.

It's certainly true that there's an enormous amount of confusion among people in the UK as to what they're entitled to — and what, exactly, to do about being overcharged for PPI in the first place.

People simply want to know just how the entire scandal began in the first place and how they became a victim of this pervasive financial irregularity.

Many of us now know, however, that people felt they had to agree to PPI when taking out loans or obtaining new credit cards (without their agreement or knowledge, in many cases) because they thought it was a mandatory process, when in fact it was not a legal requirement.

After all, if something happened, like a sudden illness or redundancy, leaving the buyer out of work and unable to make repayments, the insurance would kick in and do it for them.

Thankfully, the courts have ruled that such underhanded tactics were mostly unlawful and that those affected should be able to claim compensation.

Since then, people here in Manchester and all over the UK have been scrambling to get their hands on the cash that was rightfully theirs and unlawfully taken away from them.

So large is the scale of the mis-selling problem, an estimated two million or more people around the country could be affected.

PPI claims software: dealing with the headache of PPI claims

As with any kind of compensation claim, trying to do it yourself and navigate the often complex legal and administrative requirements can be extremely off-putting.

Many people just don't know where to start; others are so perplexed by the entire affair that they just give up at the outset and don't even bother.

That’s despite the fact that the average compensation payout is £2,750 and over £20 billion has been awarded to people all over the UK so far. (Although one unfortunate man in Birmingham won just 3p on his PPI claim – and had to pay tax on top of it.)

All this is why most claimants leave the hard work with specialist companies, armed with PPI claims management software, who will sort through everything and do their best to make a PPI compensation claim succeed.

Still, it pays to know what to look out before signing up to company's services. Make sure to be aware of these three key factors when working with a PPI claims company.

Speeding things up with PPI claims software

First of all, when looking for a top PPI claims company to handle your mis-sold policy, it's really all about the money — for you and them. That means one little word: fees. What you need from the outset is transparency.

You need to know how much they charge (or what percentage they take from a successful claim) and if there's anything to pay upfront. You certainly don't want to be hit with hefty fees you weren't expecting, so read the small print — and ask.

Next, you need to know how efficient and established the company you're considering is. For instance: if they're a sizeable operation, how well are they able to handle their many claims? Do they use PPI claims software to ensure the process is smooth and you're not lost under an avalanche of manual claims? Do they have strong working arrangements with banks and financial institutions so they can gain access to the information they need to deal with claims?

And finally, just how successful is the claims firm you're considering? It's one thing to be told they're among the best in the business and they'll do their utmost to get you your cash, but what if they don't have a proven track record?

Here, a bit of investigation is required on your part, as a safeguard to protecting an eventual payout. Search around on the internet, including social media, to see what people are saying about the company — if anything.

Also, don't be afraid of contacting related government bodies, including the Financial Conduct Authority, to see if there's anything you should know. They'll only be too happy to help.

Then, armed with all this information and research, you stand the best chance of getting what’s rightfully yours: hard-earned money for a financial product that was most likely sold to you without your knowledge.

Yaakov Smith is a founder of Manchester-based Logican Solutions: a leading provider of PPI claims management software and IVA software to companies in the sector.