Cases "For" & "Against": PPI Claims – Hire A Company Or "Go It Alone"

Most people (especially those of you based in the UK) will likely have heard of the ppi reclaim scandal, but for those of you not familiar with such, here is a recap so get you up to speed:

The claims scandal is the single biggest financial mis selling scandal that Britain has ever seen, with a number of huge UK banks engaging in unethical mis selling tactics that have caused millions of consumers purchasing loans, credit cards, mortgages, and other forms of credit, to take on a policy that they had no need for from the outset.

Not only was this product miss sold on a large scale, but also over a period of around 15 years, which provides a snapshot of the scale of this mis selling problem & the sheer amount of people that could be due a refund.

Since the “judicial review” back in May 2011 (which was a court review stating that anyone who had been miss sold payment protection insurance is due a refund from the company that miss sold the product to them) there have been refunds for millions of people.

People who suspect they have been miss sold ppi, are met with 2 choices, bringing us to the main purpose of this article:

Is It Better To Claim PPI Alone Or Use A Claims Management Service?

Claiming Alone – Without The Use Of A Claims Management Company

Pros:

Enables you to receive your compensation in full, without having to pay fees to a company of experts who may have helped you win your claim.

There is plenty of information out there to aid people wanting to make a claim, sites such as http://moneysavingexpert.com offer a wealth of information for such people.

The claims’ process is not impossible for an individual to complete themselves

Cons:

PPI Claims are not always as simple as is suggested by many of the free informational resources available on the internet.

There are certain instances where you might need the guidance of an expert, for example, “what should I do if my claim is rejected?” etc, steps to take pursuing the claim with the ombudsman and so on…

Many people do not have the time nor the inclination to chase the banks for months in order to secure a refund.

Many people also lack the knowledge needed to process a claim through to completion.

Claiming PPI – With The Use Of A Claims Management Firm

Firstly, what is a ppi claims company?

This is a company that employs a number of trained professionals with experience in dealing with claims management issues, whos’ role is to facilitate ppi refunds for people who have been miss sold this insurance product.

Working With These Companies

Pros:

Hands off approach, enabling people to get on with their lives without the hassle of having to pursue claims with the banks & other corporations.

Getting the benefit of someone elses’ experience in relation to this, someone with years of experience in claims’ management

Many companies will operate on a no win no fee basis, allowing for flexibility & the mitigation of any upfront costs

Cons:

A fee will be payable on success to a company that succeeds in winning compensation for you

You may have been able to complete your claim and save yourself the expense had you made the effort to complete the claim on your own behalf

Many companies out there charge fees that are quite high (around the 25% mark, so it is best to shop around, here is a ppi claims company that charges 15% which is much more conservative should you decide to use them.)

Summary

Whether or not you choose to run your claim using a management company, OR decide to pursue a refund alone is a matter of your own circumstance, would you rather the case took longer to complete but you can retain the full award in compensation yourself? Then you should claim alone.

Would you rather have the conveienience of someone else handling the claim for you, and the flexibility of payment-on-results? Then perhaps you should consider using a company to handle that for you.

It really comes down to individual preference..

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