Be careful when claiming PPI


Financial Crime

With the Financial Conduct Authority considering a deadline on payment protection insurance (PPI) compensation claims, it’s likely that a lot of people will be looking to put their claim in before it’s too late. This potential surge in compensation claims could make for the perfect opportunity for conmen to strike. To make sure you’re not one of their victims, follow our top tips.

PPI scams

Only recently, one fraudster was jailed for tricking 1,500 unsuspecting victims into believing he could secure them a PPI refund. The individual conned his victims into believing they could get £2,400 of compensation. In order to get their money, victims were told to hand over £200. Once this was paid, he then pocketed the money along with his accomplices and stopped contacting the victims. Initial contact was made in all cases through cold-calling.

Residents of Cornwall were recently warned of a similar scam in the area. The local council warned residents after a member of the public had a near miss with PPI conmen. The individual was targeted by scammers who offered her a refund of £2,000 for PPI. After being contacted on several occasions, the victim was convinced to buy Ukash vouchers to the value of £200 to hand over as an administration fee. If you’re not familiar with Ukash vouchers, they allow you to securely transfer money between people. The victim was then told that a courier would arrive to hand over her compensation and collect the vouchers.

Don’t fall for it

If you’re looking to reclaim PPI you can do this yourself, you just need to have the details of the credit product and the insurance policy, then get in touch with your lender and raise a complaint. If you’d rather have someone else handle this for you though, take note of the following:

• Never go through a company that has contacted you out of the blue, especially if you’re being put under pressure to make a claim.

• Choose a company authorised and regulated by the Ministry of Justice to carry out a claim. You can use their online search facility to help you check whether a company is authorised.

• As some fraudsters have been using the names of reputable companies to lure victims in, check that what they’re saying is correct – a simple Google should help to verify their details if they are in fact legit.

• When it comes to administrative fees, most PPI companies will take this as a percentage of the money claimed back for the client. Some may ask for an upfront fee, but you should never be asked to hand over money to a courier or in the form of Ukash vouchers.

The easiest way to find a PPI company is through word of mouth, so ask your friends of family for recommendations if they’ve claimed in the past.

< Back to articles