In April, FreePPICheck published a tweet and Facebook post advertising refunds made by Lloyds and Halifax to two customers who submitted payment protection insurance (PPI) claims through the company.
In response to LBG’s complaint that refund figures used in the ad were misleading and unsubstantiated, FreePPICheck provided the identity of the customers and the details of the claims, explaining that the amounts referred to were those offered by the respective banks.
While the Advertising Standards Agency (ASA) confirmed that the customers had been successful in their claims through the company, it found that a 25% fee levied by the company refund plus VAT was not included in the advertised refund figure.
The ASA said this “material information” would play a key role in a consumer’s decision to make a claim with the firm, warning that the ads must not appear again in their current form.
“We considered the omission of the fee and the impact it had on the amount that was to be refunded created the impression that consumers would receive and benefit from the total amount quoted in the ads. Because that was not the case, we concluded they were misleading,” the ASA said.
Lloyds also lodged a complaint against myclaimsexpert.co.uk, for text featured on its website alleging: “…Loan, Mortgage or Credit Card PPI Insurance Our average claim is well over £2,000…”
According to BCB Solutions, which owns myclaimsexpert.co.uk, its own data showed that they had made 1637 settlements in the past year, with the total settlement amounting to £3,328,923.50, which gave an average settlement of £2,033.55.
But the ASA said myclaimsexpert.co.uk had failed to clarify whether the data showed all the claims handled in 2014, including those that had not resulted in a settlement, or provide supporting evidence demonstrating that this was the case.
The regulator considered this “significant information” as any unsuccessful claims that were not included would influence the average settlement quoted in the ad.
It added: “Furthermore, myclaimsexpert.co.uk did not provide evidence showing that their regulator also enquired about the same claim during their last audit and had accepted that the claim was accurate.
“We therefore considered that myclaimsexpert.co.uk had not provided sufficient evidence to support the claim “Our average claim is well over £2,000”. We concluded that it had not been substantiated and was misleading.”
The ASA has prevented the ad from appearing again in its current form, warning the firm that any average claims advertised in the future must be based on the correct number of clients seeking compensation, including those claims that have been unsuccessful.
