Even though you can claim your own PPI money (our guide is at the foot of this article), an industry has sprung up around this, with consumers being cheated out of a whopping £5 billion.
This is according to a new report, and the MPs who are on Public Accounts Committee (PAC) have criticised City watchdogs and authorities, for letting rogue firms rip off customers, who are already out of pocket.
For years, PPI claims sharks have been charging people money - sometimes in advance of £1,000 - to reclaim their money.
According to figures from the FCA, since 2011, there's been 7.5 million who have been paid £23 billion in PPI compensation. However, there's long waiting times for a huge number of people, which has seen claims companies moving in, promising to speed things up.
Of course, they're taking a cut of the compensation while they're at it.
The National Audit Office reckon that over £5 billion has been made by these firms, and in addition to that, the claims industry has been pestering everyone with spam texts and unsolicited phone calls.
Even though the process of getting your compensation is rather simple, in 2014–15, 80% of the PPI complaints made to the Ombudsman were through claims companies.
An FCA spokesman said: “We are considering the recommendations in the Public Account Committee's report. It rightly makes the point that central to preventing mis-selling is firms having the right culture. Firms' culture and governance is one of the priority areas set out in our business plan. However, it is right that firms themselves take the responsibility for setting, shaping and maintaining their own culture, one with the interests of consumers at its heart."
If you want to make your own PPI claim, don't get in touch with a claims company - do it yourself!
TOPICS: How To Guides