The summit on payment protection insurance (PPI) took place yesterday (Monday April 23rd) organized by consumer group Which? and MoneySavingExpert.com.
The aim of the summit was to raise awareness amongst consumers on how easy it is to reclaim compensation owed to them as a result of the mis-selling of PPI.
The two organisers want consumers to manage the compensation application process themselves and to stop customers losing up to 25 per cent of their compensation plus VAT to claims management companies.
MoneySavingExpert.com's Martin Lewis said: "I'm delighted we made real progress today to tackle the information deficit that has left claims companies wrongly persuading a nation you need pay to reclaim.”
Which? executive director Richard Lloyd said: "It is a big step forward to have representatives of all the major banks and the regulators around the table today and it is encouraging that action has been agreed to help people get back the £5bn of mis-sold payment protection still available.”
=Under the slogan, "Forget 'no win no fee'. Far better is no fee" the aim is to ensure consumers “don’t get robbed twice.”
Research from the Financial Services Compensation Scheme (FSCS) says customers are just as likely to make a successful claim themselves in comparison to the rate of success using claims management companies.
Chief Executive of the Financial Ombudsman Service Natalie Ceeney CBE said: "Consumers don't need to use a third party to complain about PPI. They will get the same outcome, just as quickly, if they do it themselves and get to keep all of their compensation."
Representatives from all of the major banks and credit card companies attended the summit and together have pledged to make the claims process easier and to help restore trust in the PPI claims management process.
According to the organisers it has been agreed at the summit will lead to standardised complaints procedures across all financial services, improved communication to customers explaining why they don’t need to use a claims management company and a joint letter from the organisers and financial services providers to the Justice Secretary Ken Clarke calling for tougher regulation of claims management companies.
Eric Leenders, Executive Director, British Bankers Association said: "We are committed to work with consumer groups to make sure all customer complaints are fairly heard."
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