Watchdog bans ad by claims management firm that implied consumers were almost out of time to reclaim mis-sold insurance
The advertising watchdog has banned a radio campaign run by a claims management firm for using scare tactics that implied that consumers were almost out of time to reclaim mis-sold payment protection insurance (PPI) premiums.
Payment Protection Partnership ran a campaign telling consumers that “time is running out” and that they should look to use its services to make PPI claims.
The ad said: “2000? 4000? Just how much are you costing yourself by not checking if you were mis-sold payment protection insurance? You could be in line for thousands of pounds, but only if you claim in time. Because if you don’t have the paperwork, time is running out.”
Claims management companies, such as PPP, offer to take cases against lenders on consumers’ behalf, usually on a no-win no-fee basis. They often take as much as 25% of the eventual payout, and lenders and regulators have urged people to make claims directly rather than through these firms
The Advertising Standards Authority received a complaint that the ad was misleading because there is no deadline for filing a claim about the mis-selling of PPI.
The company said that consumers who think they may have been mis-sold PPI have to act because after six years providers were not obliged to provide details about their policy.
PPP said that after that time consumers have to prove details of the agreement themselves, so there is an imperative to get PPI paperwork filed within this timeline.
The ASA said that there were no specific time limit rules for referring PPI complaints. For example the six-year limit was not fixed because it ran from the end of the policy agreement, not the date it started.
In addition a lack of paperwork does not necessarily stop a consumer turning to the Financial Ombudsmen Service to look into a PPI matter.
The ASA banned the radio campaign for “overstating the urgency for referring a complaint through PPP”.
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