Crackdown on rogue PPI claim firms

cashMore than 250 rogue firms have been tackled by a specialist team set up to crack down on bad practice in the payment protection insurance (PPI) claims market.

The team, created by the Ministry of Justice's claims management regulation unit, monitors hundreds of firms that offer help with claiming compensation for mis-sold PPI.
The Unit has banned 103 PPI firms from business and warned 149 for poor practice in the last year, the MoJ said, after customers complained of misleading marketing and high-pressure selling.

The majority of complaints the Unit receives are related to PPI claims management companies - 10,109 between 2011 and 2012 - which has strengthened its specialist team to deal with demand.

Head of claims management regulation Kevin Rousell, said: "The mass mis-selling of payment protection insurance (PPI) has seen complaints against claims management companies soar.

"We won't tolerate firms that break the rules and we have shut down or warned more than 252 companies dealing with PPI claims in the past year."

More than £13 billion has been put aside by financial institutions to compensate customers for mis-sold PPI policies.

Barclays revealed earlier this week that it was setting aside a further £600 million for redress to cover mis-sold payment protection insurance, taking the total to £2.6 billion. Meanwhile, taxpayer-backed Lloyds Banking Group has set aside £5.3 billion.

© 2013 Press Association
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