Over three-quarters of consumers submitting payment protection insurance claims to the Financial Services Compensation Scheme do so through a claim management company.
Figures from the FSCS reveal that between 2008 and 2011, the FSCS received a total of 21,575 PPI claims. From this total, 16,387 claims came from claims firms while just 5,188 were made directly by consumers.
The FSCS has paid out £77.5m for PPI claims at an average payout of £4,534. It says the uphold rate is similar, regardless of how claims are submitted, with 87 per cent of PPI complaints upheld that came from a claim firm compared with 83 per cent for direct claims.
FSCS chief executive Mark Neale says: “Claim firms take a sizeable part of the possible payout and are no more likely to make a successful claim than consumers can on their own.”