Monday, June 4, 2012

More PPI Scams Uncovered

Over the last few calendar months, there have actually been numerous Payment Protection Insurance (PPI) rip-offs, with prone locals being talked to by scammers intending to make money out of the insurance coverage scandal. Right now it has been acknowledged that locals in Durham have definitely been hit by the deceptive swindle, with authorities alerting people not to slip for cool calling individuals offering profitable missold PPI compensation.

PPI compensation continues to be reported in the media, particularly because the average payout continues to grow and is now around £3,000. This amount of money, especially in economically troubling times, can look very attractive to consumers. However, there are fraudsters on the prowl, trying to take advantage of the scandal, and if residents are not careful, they could actually lose money.

Durham Constabulary warned residents after it was revealed that a local couple had been contacted by telephone to offer them PPI compensation. The caller, Gary Smith, made repeated calls to the couple saying that he could offer them PPI compensation if they were willing to pay administration charges.

A police force spokesman said: "This fraudster has been falsely offering the value of £5,000 and they require a £200 Ukash voucher payment to cover administration costs. This is an advance fee fraud where victims are told to make an advance or upfront payment for goods or services that do not materialise."

For those wanting to make a PPI claim, it is important to go through the correct channels. In addition, by avoiding phone scammers and instead looking to legitimate companies, households could be set to receive lucrative compensation payments.

Customers looking to claim back Payment Protection Insurance (PPI) compensation have been urged by the Financial Ombudsman Service (FOS) to utilise only trustworthy companies. Whilst many firms are respected and they offer a great service, the FOS warned that some businesses wanted to take upfront fees and wasted people's time.

Missold PPI has caused a huge scandal in the past year after it was discovered that hundreds of thousands of people had been sold insurance that they could not use or did not want. The insurance was offered to help people cover their financial commitments should they lose their job or become too ill to work. However, this was seen as a way for banks to reduce their risks, and as a result was pushed upon many unsuspecting individuals.

Last year it was ruled that banks must pay consumers back for the premiums that had been paid, alongside an additional compensation package. However, the FOS warned that whilst some claim companies can offer great support for customers, others were more unscrupulous. Natalie Ceeney, Chief Financial Ombudsman, said: "Some of them, at their worst, are taking upfront fees and the consumer is losing out. (The customer) never had a policy and they are worse off than if they had done nothing."

For those who are looking to make a missold PPI claim, it is crucial to use the correct firm. By using reliable companies, consumers can ensure that they get the best of their PPI compensation.

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