CMCs rake in £7.4m mis-sold PPI profit

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The Financial Services Compensation Scheme (FSCS) has paid out £136m in mis-sold payment protection insurance (PPI) claims since 2008, according to latest figures.

More than £89m has gone through claims management companies and the number of consumers making claims for mis-selling from failed firms increased by 70% last year, the FSCS has reported. The figures also showed more than 19,000 people submitted claims in 2012, up from 11,000 the previous year; 59% came from claims management companies (CMC), worth £29m of claims. CMCs typically take a 25% cut of the compensation so UK consumers which totals roughly £7.4m where consumers could have claimed from the FSCS for free. But the figures show a fall from 2011 when 76% of claims went through ...

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