With consumers considering launching action against PPI they believe was mis-sold on their loan, “ambulance chasers” targeting people looking for redress could emerge and take large amounts of money from claims, an expert has warned.
“PPI has been long talked of as the next mis-selling scandal in financial services, so it is not a great surprise that we are going down this route. PPI is often a poor product that is overpriced,” Kevin Carr, senior technical adviser at LifeSearch, said to This is Money.
“We are going to get ambulance chasers.”
Official investigation into the PPI market has begun amidst claims that the insurance, which is meant to cover the cost of loan repayments in case of illness, has a low pay-out rate.
With expectation that consumers may take legal action against providers, people have been warned to trust reputable firms to help them out rather than ones that could charge large amounts.
For those seeking debt advice and other help with financial problems, advice is often given freely.