Direct PPI claims 'as successful'

Customers are just as likely as claims management firms to secure compensation in the event a payment protection insurer goes bust, it has been claimed.

The Financial Services Compensation Scheme (FSCS), which pays out compensation when a company which has mis-sold PPI has gone under, said more than three-quarters of consumers are making claims to it through specialist companies, which typically take a 25% cut. While around 87% of claims made through third parties are upheld, this compares with 83% made by individuals, the FSCS said.