PPI mis-selling firms pocket £22m

Claims management firms last year pocketed £7.4m of the compensation awarded to victims of the PPI mis-selling scandal who turned to the Financial Services Compensation Scheme (FSCS) because the firm they dealt with has gone bust.

The FSCS said that consumers have needlessly handed £22m to claims firms since the scandal erupted, with the average person paying £960 of their compensation.

In 2012, three-fifths of claims came from managers, despite the fact that consumers can claim direct for free.