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'Claims management firm took £5k of my £12k PPI payout'

Jessica Gorst-Williams
An animatronic head of Arnold Schwarzenegger features in the Financial Conduct Authority's PPI adverts - Financial Conduct Authority

A claims management company cold-called me. After some discussion I agreed to allow it to look into a payment protection insurance (PPI) claim on my behalf. I understood a fee of 30pc would be charged and that would be all.

With hindsight I realise I could so easily have put in the claim myself and would have had the proceeds without the deduction of commission. 

The claim was successful. I had no idea as to the amount that could be regained, instead thinking that anything would be better than nothing. I immediately received an invoice from the claims management company, with VAT on top. 

This meant this “no win, no fee” company was getting £5,291 on an amount (after tax) of £12,272.

TH, Devon

Your PPI had been taken out long ago and would supposedly have covered payments on a loan had you been made redundant, for example. This was irrelevant as you were self-employed, and so it had been mis-sold.

The cold caller was probably taking a chance that the issue might strike a chord. You have actually successfully made other PPI claims yourself, but none yielded as much as this. 

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The bank concerned quickly admitted that it was at fault and paid £7,314 plus compensatory interest, minus tax, bringing the total up to the sum you mention. You say it is so easy to get talked into things and you want to warn others. 

However, if you hadn’t acted on the call you might be none the wiser that you could make a claim on this particular policy.

Anyone who believes they may have a PPI claim should first speak to the relevant bank or building society. If that fails, get in touch with the Financial Ombudsman Service, which is free (0800 0234567). 

The Legal Ombudsman can help with complaints over claims management companies registered in England and Wales (