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Burgess leads £20bn claim chase in PPI sector

The payment protection insurance market is braced for a surge of compensation claims after the long-expected emergence of claim firms specifically targeting the sector.

Mortgage lenders in the sub-prime market are set to be the main focus for claim firms although loan providers, brokers and insurers will also be in line for attention in what could be a £20bn hit on the market.

British Insurance managing director Simon Burgess is setting up British Compensation early next year to target the PPI sector because he believes there is more money to be earned helping people claim for missold payment protection insurance than there is in selling the product.

Burgess says: “The endowment misselling scandal cost £2.35bn but PPI could be between £10bn-£20bn. Sub-prime mortgage payment protection insurance and all single-premium PPI is what we will be going after. We will be looking at where cover was inappropriately sold and excessive and undisclosed commission. We are recruiting at the moment and we will need at least 50 staff.”

Another firm called Conkers has recently launched aiming at the PPI market and Loancheck confirmed in July that it would target the mortgage sector.

Loancheck director John Whittaker says: “This is a hell of a racket that the financial institutions have exploited and there are many valid complaints.”


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