Citizens Advice response on banks writing to customers who may have been mis-sold PPI
6 March 2012
Gillian Guy, Chief Executive at national charity Citizens Advice said: "
The mis-selling of PPI was a national rip-off with many people paying for something they didn't need - or weren't even eligible to use. We're pleased that the FSA is making banks write directly to all those customers who might have been mis-sold PPI and explaining they can make a claim.
“These letters could spark a surge in claims management companies cold-calling people to encourage them to make a claim. We've had people coming to us for help because claims management companies put pressure on them to make a claim, took huge fees or a successful claim had been made but all of the money went to the clients' creditors and they were then left in debt to the claims management company for their fee. Anyone who is using a claims management company must make sure they read all of the small print and don't commit to anything until they fully understand the fees and charges.
“But you don’t have to pay a claims management company to make a claim - you can make a claim for PPI compensation for free by contacting your bank directly. Citizens Advice has online information to help you do this – including a template letter."
Citizens Advice recommends people to look out for a letter from their bank if they have taken out PPI and think it might have been mis-sold - don't miss out on the chance to claim compensation.
You can get free online information on PPI from Citizens Advice to help you make a claim, including a template letter to send to your bank. adviceguide.org.uk/index/payment_protection_insurance
- In 2011 Citizens Advice dealt with over 12,000 issues around PPI, up 25% from 2010.
- Of the 3,293 PPI issues raised by clients between October and December 2011, one in five were about claims management companies and PPI mis-selling.
- In the last 12 months our online advice pages on PPI were viewed over 29,000 times - and we saw a 36% increase in views between January and February this year.
Notes to editors
- The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
- The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see www.adviceguide.org.uk
- Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.9 million problems from April 2011 to March 2012. For full 2011/2012 service statistics see our quarterly publication Advice trends
- Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable (nfpSynergy’s Brand Attributes survey, May 2010).
- Most Citizens Advice service staff are trained volunteers, working at around 3,500 service outlets across England and Wales.