Unscrupulous claims firms ‘preyed’ on PPI victims
Citizens advice responds to a Public Accounts Committee report today showing claims management companies charged victims of the PPI scandal £5 billion.
The consumer champion has led the fight against PPI, launching a super complaint 11 years ago.
Gillian Guy, Chief Executive of Citizens Advice, said:
“Unscrupulous claims management companies have preyed on victims of the PPI scandal.
“It's bad enough banks let consumers down over PPI, but the fact some claims companies were able to swoop in and unfairly siphon off compensation adds insult to injury.
“Our evidence shows up to 39 per cent of customers did not know they could make a claim without these firms. It’s crucial free, independent advice is available for anyone caught up in PPI so that they can seek compensation without the need to pay fees.
"We would also like to see the Claims Management Regulator continue to take enforcement action against firms that are shown to be operating outside the rules.”
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service 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 see the Citizens Advice website.
- 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.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.