PPI claims from failed firms up 70pc in 2012

Robyn Hall

February 6, 2013

More than 19,000 people submitted claims in 2012, up from just over 11,000 in the previous year.

59% of claims in 2012 came from claims management companies and were worth more than £29m.

With CMCs typically taking a commission of 25% of the compensation UK consumers paid more than £7.4m for a service they could have received for free.

Mark Neale, chief executive of FSCS, said: “Claims management companies take a sizeable chunk of any pay-out.

“Consumers who make a claim directly to FSCS keep every penny of their compensation.

“Some people may prefer to use a claims management company, but it is important that they understand the charges from the outset and are happy to pay them.”

The FSCS has paid out almost £136m in mis-sold PPI claims since 2008 with over £89m going through claims management companies.

Sign up to our daily email