Solicitors reminded of risks involved in PPI claims one year ahead of claims deadline
With a year to go until the deadline for mis-sold payment protection insurance (PPI) compensation claims to be submitted, law firms have been reminded to make sure any applications they work are handled properly.
A cut-off for such PPI claims has been set for 29 August 2019 by the Financial Conduct Authority. We have reminded those involved in such claims about their professional responsibilities.
The majority of PPI claims can be straightforward. However, in some cases people might find the process difficult to navigate or have a particularly complex situation and seek the help of solicitors.
In these instances, we have told the profession that the Code of Conduct obliges them to make sure the claims they work on are valid and that the advice they provide represents value for money. This includes working to the maximum 20 per cent cap, introduced by Government in July, limiting how much firms can charge clients.
We have issued warning notices for those involved in PPI claims following concerns raised about potential misconduct.
Paul Philip, Chief Executive, said: “In most cases, claims for mis-sold PPI are fairly straightforward and people can do it themselves. We expect solicitors to always advise clients accordingly.
“There can be more complex cases that need professional support, but there are only a small number of firms involved in this work. We expect them to act in their clients’ best interest and only charge what is justified for the work they do. If they don’t, we will take action to protect the public.”
We put out a warning notice on PPI claims in June.
Handling compensation claims such as those for mis-sold PPI has become a priority risk for us in our Risk Outlook, which outlines the most pressing issues facing the profession. This risk also includes making claims for holiday sickness, which has been in the headlines over the last 18 months after fake applications led to claimants being convicted of criminal offences.
With the main summer holidays coming to a close, those firms dealing with holiday sickness might find a number of potential clients coming to them. These firms should also be aware of the risks involved in such work, which were highlighted in a warning notice published on 9 August.
Further information can be found on our Risk Outlook page.