Millions of customers throughout the United Kingdom have allegedly been mis-sold payment protection insurance by their banks. Many claims management companies have helped these customers get their money back. Unfortunately, a number of unscrupulous companies have also taken advantage of customers who have mis-purchased PPI. Customers will need to be aware of these scams and know how they can protect themselves.
PPI Scams Persist
Scam artists frequently offer services based around high profile events. The PPI scandal was the largest financial scandal the country has ever faced. Many criminals have offered services to target customers who may have purchased payment protection insurance.
These scams have been ongoing since the PPI scandal first emerged several years ago. They have grown exponentially as the crisis has gained more attention.
Office of Fair Trading Issues Warnings
The Office of Fair Trading (OFT) has recently stated that PPI scams are more prevalent than ever. They have shared profiles of some of the scams which they hope will protect customers. Here are some warning signs that OFT officials said customers should be aware of:
- Scam artists often claim to be associated with the OFT, FOS or another reputable agency.
- Many will pretend to be working with a legitimate PPI claims company.
- Scam artists tend to be very secretive about what they do. They will typically call or email people and won’t share their real name.
- They ask for money up front and promise to get compensation after the fact.
You will always need to be on your guard when you receive an unsolicited phone call, text message or email.
How to Protect Yourself
There are several things that you can do to avoid being scammed. Here are some tips you may want to follow:
- Never share your banking or personal information over the phone or Internet.
- Remember that the FOS, OFT and other agencies do not email or call people to request personal and banking information. Also, the OFT wants to remind people that it has no bearing to compensate people for PPI claims.
- Only work with claims companies that have a physical location and verifiable business information.
- Find out what the company’s track record is before asking them to file a claim on your behalf.
PPI scams will continue to persist as more people realize that they have been mis-sold PPI. Make sure that you are on your guard against them.