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Ppi claims pr7 article number 3
1. The UK’s ministry of justice has begun an inquiry into hundreds of claims management companies,
after complaints from high street banks that the claims management companies are posting
incorrect PPI Claims.
Insiders say that the MOJ, which is in charge of managing the claims management industry and
providing licences to these companies, have gotten thousands of complaints from banks about the
claims management companies filing invalid PPI Claims.
Data shows that UK banks are refusing to pay out PPI Compensation, to nearly fifty percent of all PPI
Claims, which are being sent to them. In the past several months, the banks have reported a surge of
PPI Complaints.
Eighty percent of all PPI Claims received by the banks are coming via these claims management
companies, who have been criticized for sending customers a flood of emails, text messages and
telephone calls, urging them to make claims for mis sold PPI.
The PPI Claims scandal began in 2008, as a scandal, however following a high court ruling last year,
the PPI Claims industry has taken off, when the banks surrendered to a legal battle against them
having to pay out compensation to customers who were mis sold payment protection insurance.
This ruling caused a flood of PPI Claims, initiated by the claims management companies, who usually
receive over thirty percent compensation for any successful PPI Claim.