SRA PPI Warning
With just two years to go until the deadline for mis-sold payment protection insurance (PPI) compensation claims to be submitted, the Solicitors Regulation Authority (SRA) is warning law firms to be careful how and when they assist clients to make such claims and to make sure any applications they work on adhere to the rules.
Often those who have a claim for PPI compensation will find the process difficult and may turn to solicitors to help them with that process. In providing that help it is vital that firms abide by the Code of Conduct and ensure the claims they work on are valid and that the advice they provide represents value for money.
The SRA state that they have received reports that solicitors have in the past:
- acted in matters without first investigating whether there is a valid claim;
- made claims without the knowledge of the client;
- failed to properly identify clients and confirm client instructions;
- submitted false claims in the hope of a settlement without further investigation by the lender; and
- charged unreasonable costs for a limited amount of work.
The warning notice also reminds solicitors that they should make sure that the claims they are handling have not been brought through cold calling – where the client is approached and invited to make a claim.
The warning notice which is entitled “Payment Protection Insurance (PPI) claims” can be found on the SRA web site at www.sra.org.uk/solicitors/code-of-conduct/guidance/warning-notices/Payment-Protection-Insurance-(PPI)-claims–Warning-notice.page