PPI Clampdown

Claims firms face PPI crackdown
Ministers will today announce a crackdown on companies charging consumers excessive fees for pursuing PPI cases. The government is seeking to reduce the number of opportunistic claims by slashing the financial rewards for PPI brokers. The new rules will set a £300 fee ceiling for claims firms, while companies will also be banned from charging customers for chasing non-existent claims. Lenders have so far paid out nearly £30bn to compensate customers mis-sold PPI, and are expected to set aside a further £5bn this year. “Some claims management companies charge as much as 40% of the final compensation awarded for very little work,” said the justice minister Lord Faulks. “This has got to stop, and this government is taking action to make sure people aren’t being taken advantage of by these greedy practices.”