Claims Firms Find New Ways To Make Money

Published / Last Updated on 13/11/2019

The rise, fall and recovery of claims management firms.

Following the closing off of the PPI window in August 2019 – claims firms will go out of business unless they can find more – what have we seen so far:

  • Interest only mortgages – attack the broker who sold it you – but they don’t appear to be attacking the solicitor who let it complete?
  • Interest only mortgages – attack the lender for miscalculating interest – e.g. daily, monthly, annual rest
  • Investment risk – did your adviser not explain the risk of loss properly, volatility, tolerance to loss, shares of funds, even seen Mis-Sold Shares?
  • Personal injury at work
  • Car accident
  • Car finance, loan and interest costs
  • SIPPS and unregulated investments
  • Undisclosed commissions
  • Claims against solicitors
  • Landlords not doing repairs!!

Why financial services?  A easy target

The Primary Limitation Period for professional negligence claims: you usually have 6 years to make a claim.  NOT FOR FINANCIAL SERVICES - IT'S OPEN ENDED.

No win – no fee – it means that successful claims pay more in fees to cover the costs of unsuccessful claims.  Claims company fees usually charge 20 - 35% of the value of your claim?  They say it is charged on top to the organisation settling any claim.  Beware this with successful claims costs higher as claims companies offset unsuccessful claims losses against these.

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