Are Claims Management Companies Worth It?
Claims management companies act as a middleman between you and a company that you feel owes you money. At the present time, these companies are being used a lot for PPI claims, so if you believe that you have been mis-sold payment protection insurance you can go to a claims management company and they will work on your behalf to get your PPI refunded to you.
Obviously, the company will not do this for free, and will take a cut of anything that you are awarded, and this is how the claims management company makes their money. Here are some examples of the positives and negatives of using one of these companies to claim back money you feel is owed to you.
It saves you time and energy
If you have a claims management company working on your behalf to claim back your PPI, it means that all you need to do is provide the company with the details of your insurance and then let them do all of the hard work. They will contact the bank or business that you got the PPI through and wrangle with them to get your PPI back for you. This means that you don’t need have to worry about the legal process; you can just wait to have this money awarded back to you.
The company has more experience
It is unlikely that you will have much experience of making PPI claims, meaning that you may struggle to put together a claim and complaint without doing lots of research first. You can trust that a claims management company knows what needs to be included in your claim as well as how to get all of this information together, so the process should not take as long and there is less chance of your claim being rejected if you are owed this money.
The company takes a large cut
A claims management company make their money from taking a cut of the compensation that you are awarded, and in some cases this can be a fairly large chunk. Although you may feel that without the company you may not have received repayment at all, you are only being awarded money which you have already paid out in insurance premiums, so technically you are just handing this money over to yet another company, instead of being fully refunded.
You could probably do it on your own
Although it may take you a lot longer to put together a successful PPI compensation claim, and you would need to do your research, there are websites online dedicated to helping you to do this. It will take a little longer to get a response from your bank and to get the compensation that you are owed, but it is still possible to do this alone and get all of the money for yourself, rather than giving a cut to anyone else.
In summary, a claims management company can be worth it, depending on how much effort you are willing to put into getting your PPI back. If you are willing to spend a little more time and energy, you should be able to do it yourself and the claims management company is not necessary. However, for time and convenience, they do serve a purpose.