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Editor’s comment of the week: End this claims farce

We have only ever done a handful of PPI policies and have not been authorised for general insurance now for more than five years. We took that decision because we are a B2B mortgage and loans master broker. It is not our job to sell insurance to the broker’s customer.
However, we get about half a dozen “complaints” a week from claim companies which are absolutely certain that their customer was missold PPI after we did not outline the terms, told them it was compulsory, did not tell them it was added to the loan etc, etc.

Not surprisingly, about 99.9 per cent of them never even had PPI.

How does a professional, regulated firm get away with representing their client without even getting some basic factssuch as “Have you actually got any PPI?” sorted out first? A solicitor would ascertain if there was any injury or loss before pursuing someone in an accident claim, so why can’t the claim firms be made to do the same?

Each “complaint” of course takes time to deal with and some of the firms want us to confirm in writing that the PPI was never sold.

I do not see why we should waste any money on postage when there is no complaint so it is an email or nothing from us.
If you went in to an electrical store and complained about the baked beans you bought and they said “we don’t sell baked beans” and you asked them to confirm that in writing, the men in white coats would be round in no time.

The entire claims industry is a farce. Disappointingly, many of the firms appear to be owned and run by former brokers and IFAs,many of whom were selling endowments, pensions and PPI in the past.

Rob Derry, Brunel Mortgages & Loans


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There is one comment at the moment, we would love to hear your opinion too.

  1. I heard the other day that the latest tactic being employed by these scumbag CMC’s is to bypass the usual complaints process and go straight in with a threat of legal action. Why? Because they know that if there’s the slightest possibility of the complaint being upheld, most PI insurers will simply settle straight away rather than going to the trouble and potentially sizeable expense of fighting it in court.

    Whether or not the MoJ can outlaw such a tactic is moot. What the MoJ should outlaw, though, is CMC’s getting round the MoJ’s prohibition of cold calling by subcontracting it to unregulated “marketing” companies. It’s just predatory, low-ball, scavenging opportunism at its very worst.

    And still we don’t know why the FSA shucked off onto the MoJ responsibility for trying to regulate the activities of these low-life vultures.

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