Ministry Of Justice Investigates Bogus PPI Claims

Ministry Of Justice Investigates Bogus PPI Claims.

The Ministry of Justice, which regulates the country's growing number of claims management firms is investigating claims management firms after an increase in bogus compensation claims file for consumers who were mis-sold personal protection insurance (PPI).

According to The Financial Times, banks have made numerous complaints to the ministry.  The report states that banks are now rejecting about half of all PPI claims - after an increase in the number of complaints in recent weeks.  The majority of which are coming via claims management companies.

The report added the high number of invalid claims taken straight to banks contrasted with the number processed by the Financial Ombudsman Service, where about a quarter of mis-selling PPI claims were rejected.