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Archive for tag: The Benefits of Using a Claim Management Company

The Benefits of Using a Claim Management Company

Making a claim for mis-sold payment protection insurance (PPI) according to some websites, is 'easily done'. All you need to do, they say, is check this and check that, telling the bank you are entitled to compensation and why. Job done…. Or is it?

What is a claim management company?

Also known by its acronym CMC, this is a company that will manage your case on your behalf. They work in all kinds of fields, not just helping people to claim compensation for mis-sold PPI.

Some work within the field of personal injury claims. They prepare the evidence and information, passing it on either to their own legal teams or finding a lawyer to work with to actually make your claim. If a case is straight forward, it may not necessitate a lawyer.

With PPI compensation claims, there is rarely a need for a lawyer but the CMC can provide an invaluable service for some people.

Why are some people critical of CMCs?

Firstly, a CMC charges a fee for their service, usually as a % of the final amount you receive in compensation. Some companies charge a high fee, whereas others have a fee structure that is more in keeping with the level of work done.

Some people are critical too not only of the fee, but also of some of the marketing that some CMCs have become involved in. For example, aggressive and sometimes misleading texts sent to mobile phones.

Sometimes, the accuracy of the information and the marketing jargon around can also mislead customers in to thinking that making a claim for PPI compensation is complex and difficult.

So, are there benefits to using a CMC?

For many people, using a claims company has helped them enormously:

  • Helpful - there are some customers who find the prospect of making a compensation claim daunting. They are unaware of what their rights are and this has led to some banks and lenders not dealing with their claim fairly.
  • Marketing - there are also some marketing campaigns initiated by claim management companies that have placed the facts about PPI and how to make a claim firmly in the domain. As yet, no bank has invested cash in advertising to their customers how to make a claim and why it is important.
  • Simple and complex - there are times when compensation claims can be complex. There are also times when the bank has not acted in a way that was fair, with CMCs highlighting these cases to prevent them happening again. People not being properly compensated, such as those claimants who were denied the fees and costs that should have been reimbursed: this issue was first raised by a claim management company.

As a claim management company, Payment Protection Scotland do charge a fee for their professional services. Contact us to find out more, and how we can help you.