UK compensation claims industry is worth £ 400million a year
The majority of claims relate to life and pension insurance (£ 157 million) and general insurance (£ 158 million), followed by investments, general finance and insurance.
Claims for compensation may be directed to customers, individuals or businesses in the event of failure to provide a good or service.
While personal accidents and injuries continue to be the most advertised on television, recent years have seen a resurgence of interest in payment protection insurance, known by most as PPI.
How do I make a claim?
Compensation claims can usually be made directly with the provider of the good or service and, assuming the business is regulated, it has a legal obligation to respond. In reality, FCA describes how you can claim compensation from a business in 7 steps.
This usually involves providing physical proof and documentation of the product you purchased and any additional information to support your claim.
For those unfamiliar with the compensation claim process, or wish to leave it to a professional, can use a Claims Management Company (CMC) – which is sometimes helpful but may also charge a fee for doing something that l the individual can often do it himself.
In fact, the publicity for CMC’s PPI claims was so intense that it forced UK regulations to put in place a deadline which encouraged all potential victims to come forward and make a claim.
When the PPI deadline arrived in August 2019, many claims management companies turned their attention to the high cost payday lending industry.
Millions of UK customers have been able to recover badly sold loans and interest paid, usually due to a lack of checks and accessibility measures. The average customer was able to claim anywhere from £ 500 to £ 1,000 and the result saw some of the UK’s biggest lenders fall into administration including Wonga, Quickquid and The Money Shop.
The number of lenders offering high cost or payday lenders fell from 80 companies in 2015 to less than 15 in the market, with more reliable loan companies move towards long-term and guaranteed products.
Later this year, claims may be available in other similar lending areas. Some lenders have already indicated on their websites that they accept repayments, including those looking to make a claim against Amigo Loans, PiggyBank or Lending Stream.
The sooner you claim, the better
There are a number of companies that admit to wrongdoing and have put in place reimbursement programs, often prompted by regulation.
However, there is also the risk that if you claim too late, there will be no more funds available to pay your claim.
In the case of Wonga, it was announced today that they would give 4% of total claims to around 400,000 ex-customers.
While this was only a fraction for people who were charged 4,000% interest, those who claimed early were able to receive the full amounts with a father or two claiming £ 20,000 in fees.