More than half of consumers would rather use claims management companies (CMCs) to seek payment protection insurance (PPI) compensation than to go directly to their bank, according to Which.
The survey of 2,068 people conducted in February this year found that fears over bureaucracy, and the length and difficulty of the process were key factors in dissuading independent PPI claims.
The consumer advocacy site found that the prospect of paperwork put off would-be independent claimants, with a third thinking it would be very difficult to check if they had been sold PPI. These findings are despite the prospect of independent claimants keeping the full amount of PPI compensation.
The research comes after allegations by the Alliance of Claims Companies (ACC) that Blackhorse and other lenders have employed delaying tactics to avoid processing PPI claims.
Simon Evans, head of the ACC, told Motor Finance that the number of PPI claims that Blackhorse said it could find details for rose by 80% within three months.
In March, the Financial Conduct Authority (FCA) set 29 August 2019 as the final deadline for consumers to make PPI claims.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
Which said: “You don’t have to provide lots of information upfront, which is helpful if you can’t remember if you had PPI.
“And, if successful, you get to keep 100% of your compensation, whereas CMCs can take up to a third of your compensation in fees.”