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2017-07-13 22:34:34 – Last Update:Image copyright Getty Images
A major PPI claims breakthrough could double the time claimants have to take their case forward, a survey has suggested.
Research by comparison site Save My Business suggests that the turnaround time could be slashed from months to just 14 days.
That would save people £2,128 in the first year alone.
The study also found that almost half of claimants are not aware of their rights, despite insurers now having six weeks to respond.
Save My Business said the findings were based on responses from 550 claimants and their solicitors.
It identified 42% of claimants did not get a response after six weeks and nearly three-quarters of respondents reported the cost of living was a barrier to pursuing their case.
Save My Business said the rise in claims was due to a surge in the number of people seeking compensation after not being able to make a claim because of the crisis which began in 2008.
But the introduction of claims management companies, which have a duty to inform the claimant about their compensation options, along with the “asset test” which stops consumers receiving compensation if they have more than £20,000 in assets, has left people feeling “misled and disillusioned”.
The survey says 6% of all PPI claims related to savings (which do not qualify for the asset test) and 46% of these claimants had no choice about taking the case forward.
Both figures have increased considerably from the last comprehensive analysis completed two years ago, which reported a much lower number.
The findings come just days after the introduction of universal credit, which began rolling out in full in October 2014.
One former claimant said: “The new universal credit system has made it easy to claim, but has made it near impossible to get any help to recover or understand your benefits.
“Claims are not being pursued and assistance is not being provided to make sure I can make an informed decision as to whether I need to continue making PPI claims.”
When asked for comment the Department for Work and Pensions said: “We are investing in better support to help people get back to work and prevent the need for personal injury claims.
“We also want people to be confident in their PPI claims process so claimants are provided with a fair deal.”
Jonathan Copestake, the director of Save My Business, said: ”
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