Banks and regulators to take on claims firms

The major banks, regulators and the Financial Ombudsman Service, have pledged to make Payment Protection Insurance claims easier and prove to consumers that they don’t need to use a claims management company. 

MoneySavingExpert.com and Which? hosted a PPI Summit yesterday to increase awareness of how easy it is for consumers to reclaim mis-sold PPI for free and to tackle head on the unscrupulous claims firms who exploit consumers wanting to claim back their money.

The aim was to get all parties working together to help people get back the money they are owed and help restore trust in the PPI claims process.

Participants at the summit agreed to standardise complaints procedures across financial services providers and to make the process clearer and simpler for consumers.

They also agreed to work together to improve communication with customers and to explain why they don’t need to use a claims firm.

They also agreed to write to the Justice Secretary Ken Clark to call for tougher regulation of claims firms.

All parties present also committed to continue to work together to take forward further work in this area.

Richard Lloyd, executive director of Which?, says: “It is a big step forward to have representatives of all the major banks and the regulators around the table and it is encouraging that action has been agreed to help people get back the £5bn of mis-sold payment protection still available.

“But this is just the start. We will continue to work with everyone present but the government must also now up its game and speed up its plans to tighten up regulation of unscrupulous CMCs who are exploiting consumers who just want to claim back what is rightfully theirs.”