Rise in Bogus PPI Mis Selling Claims

July 11, 2012 - PRLog -- Claim management companies have called by building societies association in account of bogus payment coverage claims. Organization has stated that there should be more strict regulations on CMCs to keep check over fake claims. Huge rise has been noticed in useless complaints.

According to the figure released by BSA there is 247 percent increase in bogus complaints in last six month. Data has recorded in last April. Payment protection insurance(http://www.ppiclaims.uk.com/payment-protection-insurance/) plan was generally sold with personal loans, mortgages and credit cards. This insurance was made to cover payments if borrowers lose their job due to sickness or redundancy. Lenders and policy sellers have sold this plan with false provision and exclusion. Often, they ignore to check the eligibility of policy holder at the time of selling the plan. There were some consumers who found that they cannot receive any coverage as the policy or wrongly sold to them and doesn’t fit to their personality. In some other cases, consumers were even unaware that they had PPI coverage.

When PPI mis selling(http://www.ppiclaims.uk.com/mis-sold-ppi/) were noticed in larger numbers then several claim management companies come into existence. CMCs generally charge a fee from consumers for offering PPI claim service. Consumers can also organize their own PPI claim process but most of the costumers think that claim management firms can help to complete the process successfully.

In recent months, several fake PPI claim has been noticed that was just wastage of time, cost and employee resource. Director General of FSA, Adrian Coles have told that if claim management firms show their irresponsibility while submitting PPI claims(http://www.ppiclaims.uk.com/) to FSA or lenders then enforcement action can be taken against the company. However, it is required to maintain some stronger regulations for claim management firms in order to fake PPI claims. Such claims are just a burden on the resources of FSA and BSA.