Payment protection insurance (PPI) has been widely mis-sold. But you can easily make a complaint yourself – there is lots of free help available.
What claims management companies do
They take up complaints against financial services companies on behalf of people like you.
They deal with many types of complaints about financial services but are particularly interested in PPI complaints at the moment.
They might contact you by letter, telephone or text, offer to make a complaint on your behalf and promise to get you a large compensation payment.
But their charges can be high. For example, if you’re awarded £1,000 in compensation you could typically miss out on around £300 of that money.
Firstly make sure you have a PPI policy.
There is evidence to suggest that complaints management companies are making complaints on behalf of people who have never been sold a policy.
If you’re contacted make sure you’ve taken a policy out. You can do this by checking your paperwork.
It’s often sold alongside credit cards, loans or mortgages.
Making a complaint
You can make a complaint yourself. You’ll need to contact the business that sold you the policy.
It’s usually best to do this in writing and check the firm has received your complaint.
For more information, read our Making a complaint (PDF 797KB) printed guide.
If you are unsure whether you have a PPI policy or whether you want to make a complaint our Money Advisers might be able to help.
You will not be charged for this service.
If you need help making a complaint, there is free support available.
For example, the Financial Ombudsman Service (the Ombudsman) has an online PPI resource that includes a questionnaire to make your complaint.
This will help you include all the relevant information.
Don’t worry if you’re not confident in dealing with the firm.
As long as you have given the firm eight weeks to deal with your complaint, you can ask the Ombudsman to take up the matter if the firm hasn’t responded or if you’re not happy with their response.
The Ombudsman is a free, independent service for settling disputes that consumers and financial businesses haven’t been able to resolve themselves.
The Ombudsman looks at the facts of the case – not at how well you present your complaint.
Many PPI complaints referred to the Ombudsman are found in the consumer’s favour.
And their statistics show that if you refer your complaint to them yourself, you’re just as likely to win compensation as if you were to pay a claims management company to do it for you.
If you do need somebody to act on your behalf, you could ask your local Citizens Advice Bureau, or a friend, carer or relative, to help.
This is your right.
Using a claims management company
If you decide to use a claims management company for any type of complaint, make sure that it’s:
- Regulated by the Ministry of Justice
- A member of a professional body (eg. the Law Society of England and Wales, the Law Society of Northern Ireland or the Law Society of Scotland)
This is because they must meet certain standards. Make sure you understand the fees it charges, and never pay a fee up front.
Check the Authorised Business Register to make sure a claims management company is authorised.
If you are unhappy with the service you have received from a claims management company, you can complain directly to the Legal Ombudsman.
The Legal Ombudsman’s website gives you all the steps you need to take before a complaint can be heard.
If you want to complain about your claims management company (CMC), follow three simple steps:
- Complain to your CMC first so it has an opportunity to resolve your complaint. The Legal Ombudsman has a template available on their website if you need guidance on how to write a formal complaint.
- Give the CMC eight weeks to resolve the complaint. If it sends you a final response (even if this falls within eight weeks) and you’re still unhappy, contact the Legal Ombudsman. If the CMC fails to respond or resolve the complaint within eight weeks, then you can contact the Legal Ombudsman.
- The Legal Ombudsman will discuss the complaint with you to check that it is within their time frames. They will ask you some questions about the company and to share any documents exchanged between you and your CMC. They will then look at how the CMC responded to your complaint.
Stop unwanted calls or post
If you want to avoid being contacted by a claims management company (or other company without you having requested it) you can register with the Telephone Preference Service to stop receiving unsolicited sales or marketing calls, and with the Mailing Preference Serviceopens in new window to stop unwanted post.
Whatever your situation, get clear, unbiased information and advice from the Money Advice Service.
If you can’t find what you’re looking for on our website or have a question about money, call one of our trained advisers on 0800 138 7777.
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