Claims Firms Get £1.7bn From Lloyds PPI Scandal

[Legal Beagles]

The boss of Lloyds Banking Group is demanding a crackdown on claims-handling firms as it emerged that they have reaped £1.7bn from Lloyds Banking Group’s PPI mis-selling disaster. Sky News can exclusively reveal that internal estimates compiled by the UK’s biggest high street lender suggest that up to £1.7bn is likely to have ended in... Read more »
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[MIKE770]

Re: Claims Firms Get £1.7bn From Lloyds PPI Scandal

Hang on fees come out of the claimants payback I..e. 28% + VAT?

[Amethyst]

Re: Claims Firms Get £1.7bn From Lloyds PPI Scandal

The CMC's have had their £1.7bn by way of their 20-40% fees from consumers payouts, but have also cost the banks loads in false complaints (staff/admin etc)- it is a bit poorly worded I agree.

"We have 7000 people processing complaints, yet one-third of the complaints we receive do not have a valid PPI policy behind them," he said.

"That means a huge cost to us that we would like to avoid; it is very easy for consumers to apply directly to get all the money they are owed instead of paying a third of it to [CMCs].

"In addition, we believe that CMCs that do submit claims that have no PPI policy should bear the cost of processing that claim, otherwise it is always a free option for CMCs, which is neither fair not correct."