Many organisations such as Which? and Martin Lewis – moneysavingexpert.com will tell you that you should not use a CMC, you should do your PPI complaint yourself.
Here are just a few pitfalls you might want to consider before you start out?
If your complaint is ‘time barred’ it doesn’t matter what the merits of the complaint are or how much you are owed, you will NOT be getting any refund. Time barring can happen in several different ways. Here is just one example.
Let’s say you had an MBNA credit card many years ago and you can’t remember ever having PPI on it. Then you find an old statement and you see that you had been paying it for years, say from 2000 to 2003? You write to MBNA and say something along the lines of ‘I don’t remember giving you my consent to add PPI to my account and I was self employed and I had a pre-existing medical condition so I want my PPI back’. That may be an honest and perfectly reasonable argument but MBNA will treat that first complaint point as you saying you did not grant them consent to add PPI in 2000 when you took out the credit card. They will then write back to you and say ‘sorry but your complaint is time barred because if you didn’t grant us consent, when it first appeared on your statements in 2000 you knew, or ought reasonably to have known, that you had a right to complain and as that is more than 3 years ago, you are now ‘statute barred’ from complaining to us about that sale’. If you had not argued the first point (consent) and just relied upon the self employed and pre-existing medical condition, you would have, almost certainly, had your complaint upheld. Because you were honest and said ‘I don’t remember giving consent’ they will not consider any other mis-selling complaint points and what’s more, neither will the Financial Ombudsman Service! We have seen dozens of cases like this, where clients have asked us to take on their case once they have had it rejected / time barred, and there is rarely anything we can do to help at that point.
We have been working PPI complaints for 12 years now. Every single month without fail a bank will tell us that a client did not have PPI only for us to later recover thousands of pounds for that client of mis-sold PPI. If you think that you will just write to the bank and ask them to log a complaint about any PPI you might have been sold, and they will do that, you are WRONG! In the last few months alone 5 of our clients have received more than £10,000 EACH after being told by their bank that they could not trace any PPI policies in their names. The banks mis-sold tens of billions of pounds of PPI and they are not going to make it easy for you to get it back. Yes it is true that some people get HUGE refunds without ever using a CMC. An old friend of mine that I used to go to college with, did his own PPI and was paid thousands of pounds by Lloyds Bank. After he had finished I asked him to let me see if I could get him (and his wife) anymore back from Lloyds and other banks and credit card companies they had used over the years. Just from Lloyds we got him an ADDITIONAL £20,000+ and another £8,000+ from MBNA and Barclaycard. His wife got over £15,000 back following our intervention. Now you may doubt this, and well done for not believing everything you read, but one day my regulator will sit in my office and ask me to prove this claim, of that I have little doubt. Trust me, this is a true story and if it isn’t, the CMC regulator will close JMP Partnership down for making a claim we can’t prove. One day, my old friend may even receive a call from the regulator about this claim and I am confident he will tell them it is 100% true. Plus of course we have all the letters!
On numerous occasions over the last 12 years, banks have upheld our client’s complaints and made offers that we have said were not properly calculated. The banks have said ‘yes they are’ and in many cases we have been forced to send the case to the Financial Ombudsman Service. On dozens of cases the FOS has agreed with us and clients have ended up being paid substantially larger refunds. In just one case that ADDITIONAL payment was close to £10,000. If you trust your bank to properly calculate the refund you are owed (it is pretty complex maths) then just remember, they RARELY make mistakes and pay out too much (but it happens). Almost all the ‘mistakes’ are in their favour. Do you know how to calculate years of compound contractual interest and compensatory interest and the impact of PPI rolling from one loan to the next? We do.
It is true and fair to say that consumers CAN and Do get refunds of PPI (many of which might even be correctly calculated) but the following banks didn’t get enormous fines from the FCA / FSA because they were appropriately handling consumer’s complaints?
The banks will tell you these are all OLD fines and they have cleaned up their act. If you think that might be true, read this story. Clearly the regulator doesn’t think they can be trusted – should YOU?