Mortgage News
Claims manager masquerades as FSCS
Consumers have been alerted over a claims management company using the initials of the Financial Services Compensation Scheme (FSCS) in its advertising.
The company, which uses the FSCS acronym in online search advertising, is seeking payment protection insurance claims (PPI) from consumers.
It charges a 20% fee for its services – unlike the FSCS which is free to consumers and funded by the financial services industry.
With its 20% fee, consumers stand to lose around £906 on an average claim on the basis the average pay-out of such companies is £4,534.
The FSCS estimates consumers could pay as much as £12m in total fees to claims management companies this year.
It added paying a third party to submit a claim does not significantly increase the chances of receiving compensation, with the number of successful claims made by individuals almost the same as those made by third parties.
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