Financial claims continue to dominate the news on a weekly basis, the most prominent, often referred to as “the biggest financial mis-selling scandal of all time “Payment Protection Insurance (PPI). Over recent years there has been a dramatic change as to how financial claims are managed. PPI has contributed to significant growth within the financial claims management sector with in excess of 1100 firms registered with the Ministry of Justice to carry out financial claims management activities.
Sharing Financial Claims expertise and processes
The members of the Professional Financial Claims Association have experience and knowledge in a wide range of financial claims types. This follows years of investment in understanding the financial product which was mis-sold, the obligations of the adviser, how it was mis-sold and the structure and values of compensation due to the claimant. Expertise and processes have been established, these can be shared with the wider financial claims sector to ensure that a uniform and robust presentation of financial claims ensures consumers have access to justice.
Payment Protection Insurance (PPI) continues to dominate the news
The growth of Financial Claims Management Companies
The sector has become unpopular with many, criticised by consumer groups, banks and other financial bodies, it has become increasingly difficult to manage and enforce regulation. Claims Management Companies (CMCs) are all ‘tarred with the same brush’ this seems unfair; well run, ethical, professional CMCs offer an invaluable service to consumers who choose to use their services. Often the root cause of why this sector has grown so rapidly is forgotten, consumers and businesses were mis-sold financial products over many years resulting in personal loss and in many instances financial hardship.
The complexity of financial claims
The complexity of some types of financial claims, prohibits many consumers from taking action themselves, mis-sold PPI has been the key driver of many firms, some of whom have lost sight of what the real requirements of consumers are. Often, one mis-sold product can prove to be one of many sold as part of the ever changing landscape in selling financial products, consumers became commodities, targets needed to be hit and bonuses paid to hungry bankers and brokers. Valued and trusted advice, expertise and services to ensure that consumers have access to justice is important
This is an interest-only mortgage linked to an investment product. Most consumers who bought one were told that the policy would eventually pay off the mortgage at the end of its term and provide an additional lump sum.
In 2012, the FSA carried out a review into the sale of Interest Rate Hedging Products (IRHP’s) to small and medium sized businesses; from this review the FSA found ‘serious failings.
The mortgage industry has seen a great deal of change over the last 20 years and remains an important and influencing sector within the UK economy.
On 5 December 2008, the Financial Services Authority (FSA) published their results from the Pension Switching Review. They reviewed 500 files from 30 adviser firms and found 16% of files contained unsuitable advice.
Whole of Life policies are designed to pay a sum of money to a consumer’s family on their death. With the most common types of policy – reviewable – the consumer chooses that sum, pays regular monthly premiums, part of which are used to build an investment fund.