Last week, the Claims Management Regulator announced that they will introduce a fee rate cap for PPI of 20% + VAT. This follows a vote in the House of Lords. It won’t happen until Parliament votes and that is expected around March 2018. The cap may not come in for a further 2 months after that. But the writing’s already on the wall rip-off claims management companies.
Up front fees are also being banned. Any charges made when consumers cancel their contracts will have to be fairer. That is, they can only be for for work actually done and must be reasonable.
A FairerPPI spokesperson said “It’s about time! We’ve always complied with all of these best practices. Our current rate of 15%+VAT (18% total) is less than the fee rate cap. In fact, we’ve never charged as much that even though many companies charge much much more today.” Company current fees charged by other companies.
“Too many claims management companies have relied on consumers not checking small print. They’ve hidden massive fees for what they do. Some even have the cheek to charge extra fees. For example, if they need to pay a bank or company fee for a PPI check, they charge extra. We’ve always been no win, no fee and all inclusive at a fair rate.”
“We’re delighted that the rest of the industry is going to have to comply with a fee rate cap and clean up its act or close up shop”.
“We predict a large number of claims management companies will disappear. They won’t be able to operate efficiently enough to make a living with the fee rate cap. Or they will move on to try to fleece consumers on something else. We’re proud that we’ve always been and always will be the Fairer choice.”