Insurance Solicitors Demand a PPI Fee Cap Extension to Personal Injury Claims
posted on Jan 05, 2018
According to Legal Futures, amongst the scurry to set a date for whiplash reforms insurance solicitors demanded a ppi fee cap extension to personal injury claims. In their own words, “Insurance lawyers’ call for the government to extend the fee cap to be imposed on PPI cases to personal injury claims ahead of the whiplash reforms fell on deaf ears this week.” Insurance lawyers proposed this ppi fee cap would allow these lawyers to ask for up to 20% in compensation with ppi cases. This would occur by curbing the CMC’s or Claims Management Company’s .In the end; the Government did not implement any of these changes.
What the Insurance Solicitors have to Say
Legal Futures explained that the insurance solicitors want a ppi fee cap for many reasons. These include that with more government involvement and therefore more CMC involvement in the personal injury claims sector, prices could go higher and fraud could become more prevalent, which strangely the whiplash reforms are trying to lessen. Insurance solicitors also see that a ppi fee cap would force CMC’s to look for opportunities elsewhere leaving the lawyers with a larger market.
What the Claims Management Companies have to Say
It seems from the report that the CMC’s report that the ppi fee cap, according to them, would lead to huge losses in companies and them having to, therefore, let go of many employees. Furthermore that it could lead to companies going out of business and therefore being a detriment to the consumers. The ACA supported these statements through research done which found that a large percentage of CMC’s would go down and that over 50% of CMC’s would have to let go of employees.
This is not the First Controversy Surrounding These Types of Claims
As many know, this is not the first controversy surrounding PPI. A 2016 Guardian article stated that the mis-selling of PPI had been occurring since the 1990’s. The Financial Conduct Authority or FCA estimated, “3m people were affected”. The FCA then went onto to announce a June 2019 deadline for individuals to claim for these mis-sellings.
So, who is Right?
Let us take both parties for their words.. It seems that either way there would be detrimental effects on the consumers. Although, it seems that the CMC's may have a stronger case this time. This is due to their proposed detrimental effects on the consumer as well as employees, backed by ACA research. Although, the truth is that we can never know the true motivations from each side. We can also not say for sure what will happen in the future. This, of course, is a decision Governments have to make every day; which option is the lesser of two evils? Can you decide?
Whatever your opinion may be, if you find yourself in a sticky situation you need solicitors to assist you. Legit Claims solicitor portal has a great list of solicitors to help you with personal injury compensation.