PPI Claims Management Companies Are Not The Problem – CSC

The Claims Standards Council, who represents some UK claims management firms, said that firms are not to blame for the increasing number of fraudulent PPI claims cases. The Claims Standards Council has a streamlined process of investigating claims and ensuring that all claims management companies do not place too much pressure on banks when addressing claims.

This came as a response against banks who continue to blame claims management companies for sending fraudulent mis sold PPI complaints that continually clog the PPI claim process.

The CSC does not deny that CMCs take in PPI claims that merit some ambiguity and send them to banks. However, they said that these PPI claims are sent to banks because the client had truly forgotten if they have a mis sold PPI on their loan, mortgage or credit card.

The British Bankers Association said that customers do not need legal representatives to know if they were mis sold PPI or not. Through a simple phone call, they can ask if their loan, mortgage or credit card has an attached loan protection, accident, sickness or unemployment insurance (ASU) or any other kind of PPI. They do not need to have their PPI claims sent in.

Over 86% of bank-rejected claims in the Financial Ombudsman was ruled in favour of customers. However, according to the CSC, some claims rejected by the bank were valid PPI claims under the ruling of the FOS.

The CSC makes their stand that claims management companies are not to blame for the slowdown of the PPI claims process because the banks themselves are still dragging their feet to address the situation.