General Business

The low down on PPI compensation scams

The sale of Payment Protection Insurance (PPI) has long being a bone of contention in both the UK and Ireland, and the insurance, often added to mortgages, loans and overdrafts, has frequently been sold in inappropriate circumstances. In recent years, banks and other financial institutions have been pressurised to review their sales practice, and to repay mis-sold PPI premiums.

ppi

Unfortunately, these changes to practice have lead to an upsurge in nuisance calls and messages relating to PPI rebates. Ranging from recurring text messages and Twitter comment spam, to calls from Indian call centres, the majority of these are nuisance calls are from companies, or individuals, looking to scam the public of more hard-earned cash. Even when the contact is genuine, claims companies typically charge 25-30% for doing something that you can do yourself for free.

Am I due PPI compensation?
If you’ve never taken out a loan, or are sure that you’ve never paid PPI, then any contact that you get about PPI should be ignored, or reported. If you think that you might be due a refund, and are considering submitting a PPI reclaim, there are a number of things that you should consider. Firstly not all PPI was sold illegitimately, and even if you paid PPI, you may not be entitled to a refund.

If you think you might be due a refund, check out Money saving Expert for a free guide on PPI claims

If you feel that you are not due PPI, and continue to receive cold calls, or unsolicited contact via SMS, letter or email, contact http://www.grouputilities.com for help in stopping the spam

Protecting yourself
While some cold calls regarding PPI compensation are legitimate, there are a growing number of scams in the industry. Spotting a PPI scam can help save you being defrauded of hundreds of pounds, but even using a legitimate claims management firm can be a costly exercise. 

Scams are sometimes difficult to spot, especially if you have been contacted and caught off guard by a seemingly well-informed and confident fraudster. Scammers target those who don’t have the energy or time to make a claim themselves, including those who are busy balancing family and work life, and who are most likely to jump at the opportunity for a quick payout.

Always act sceptically when approached by a company offering to recovery money on your behalf, especially so if they claim to have already completed the groundwork. Any request for upfront payment should be ignored; legitimate PPI reclaims firms will never ask for upfront payment. Those who request instant money or bank transfers or other hard to trace payments are usually scammers.

Never disclose personal or bank account information over the phone, by internet, or in person. Requesting a direct number on which you can contact the caller usually helps weed out some of the scammers. Official bodies, including the Office of Fair Trading (OFT), the CA, or the MOJ, will never contact individuals to offer PPI compensation, and anybody who claims to be from one of these can be taken to be a scam. 

Not all calls will be scams, but even when a company is legitimate, it is still likely to over charge you. Seriously consider making your own claim.

 

Image: Image attributed to FreeDigitalPhotos.net/ Stuart Miles

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