Surge in invalid PPI claims investigated

Claims management firms are being investigated by the Ministry of Justice after a surge in bogus compensation claims filed for consumers who were mis-sold personal protection insurance (PPI).

The Financial Times reports banks have made numerous complaints to the ministry, which regulates the country's growing number of claims management firms. The report said banks are now rejecting about half of all PPI claims - after a surge in the number of complaints in recent weeks. The majority of the cases are coming via claims management companies, many of whom advertise to newspapers, send unsolicited emails and text messages urging consumers to make a claim. A bank executive told the FT: "It is delaying things horribly. The sheer volume of submissions is distracting us from th...