Whenever you turn on the Television or radio these days, you are very likely to see or hear a PPI company advertisement offering to help clients gain compensation from mis-sold financial products. It is an offer that many have taken up with an estimated 20 million people having been mis-sold payment protection on loans and credit cards in the United Kingdom.
It has been a extremely effective service helping members of the public reclaim millions of pounds in unfair charges for Payment Protection Insurance. This service was usually performed on a strict commission only basis. The banks would often pay the compensation direct to the customer, bypassing the PPI Claims company.
Part of the paradigm of the big PPI mis-selling scandal that is not so well known, is the problems facing the claims companies themselves, having to chase clients they have successfully won compensation for.
Millions of pounds remains unpaid for PPI services and whilst some firms have taken steps to try to reverse this growing trend, others have simply remained focus on attaining the business in the first place.
Unpaid commissions is an all too familiar occurrence for claims companies and can happen for a number of reasons:
- The customer wins an award for compensation, only for it to be paid directly onto a card and pay off an existing outstanding balance, leaving them with nothing. The fee for making the claim still needs to be paid and some clients are unable to pay, leading to a dispute.
- The customer simply refuses to pay, claiming that they weren’t informed there would be fees to pay out of the award. As hard as advisers try to explain all of the details of the claim, some will not listen, some will not agree and some will flat out refuse to pay.
- There are instances when claims are made on joint accounts and the people in question are no longer together. In this scenario, there can be a dispute between both parties about who owes what. There is only one loser here, the claims company.
So, is there any realistic and effective recourse for the PPI firm?
Specialist Collections Agencies
The short answer is, yes. There are specialist debt collection firms that have specific expertise in recovering debtors that arise from a claim for PPI. They understand the complex nature of a dispute of this nature and can recover outstanding money in a professional and ethical way.
The rate of claims is still rising, so it stands to reason that a PPI claims company should protect itself against non-payment. If you are the operators of such an enterprise, then you should seriously consider employing the services of a specialist collections agency such as Frontline Collections. Read more about the success of Frontline for PPI Debt Collection.
A Debt Collection Agency for Claims Management companies service will ensure your business is sustainable in the long term. Ensuring you work with a ethical and professional Agency is a must!
So if you are thinking of using a DCA to recover unpaid commissions due to you, It could be best business decision you ever make.