Police Warn of PPI Compensation Scam

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Police Warn of PPI Compensation Scammers [19th Sep 2011]

Nottinghamshire police are warning local residents of a compensation scam which has led to hundreds of pounds being given to fraudsters. Callers who claim to be from the Ministry of Justice are telling residents they could be entitled to PPI compensation. The victim is then told they must pay an administration fee via Western Union or PayPoint. DC Simon Gunn from the Fraud Investigation Unit has commented that advance fee fraud is prevalent across the country and often appear genuine because the caller has details such as the persons bank account numbers. The police are warning that no official agency would ask for fees upfront or call unsolicited. (Yes, we're thinking what you're thinking ... but we're going to be polite on this occasion and not comment.)

A young woman has received more than £5,000 in compensation after a bad dye job at a local salon left her looking like a "scarecrow". Charlotte Jones paid £60 to have her hair bleached from brown to blonde. She was in the salon for 11 hours and had her hair bleached a total of five times after the first few bleaches failed to work. Her scalp was left burning and her hair ended up looking and feeling like straw. Following the colouring job, Charlotte's hair began to fall out and she was told by a specialist that she was best to shave her head. It was admitted that the hairdresser who worked on Charlotte's hair was a trainee and uninsured. The salon tried to claim that her hair looked good. The eventual outcome was that the salon had to take responsibility for the actions of a hairdresser working in the salon even if she was a freelancer. Charlotte has now grown her hair back.

A claims management company has hit back at suggestions that all claims companies are rogue traders. The Mitchell Farrar Group and its sideline business ppiclaimsback.co.uk has said that examples of disreputable firms which have been featured on television do not represent the industry as a whole. The company has pointed out that some companies, including theirs, work tirelessly for their clients and ensure that they receive all the compensation they are due. Jim Rowley from the company has said that Mitchell Farrar is set apart from others in the sector and receives plenty of good feedback from customers. It is pointed out that claims companies were set up when it was hard, if not impossible, to get recompense from a bank directly. Claims management companies took this strain away from their clients.

An EU directive on compensation payments for invoices which are not paid on time is hoped to be fast-tracked and brought into force from next year, rather than 2013 when it was originally expected. The directive will mean that payment terms of more than 60 days will not be possible unless explicitly agreed to. In addition terms of more than 60 days will be considered unfair in the courts and are unlikely to be upheld. Standard payments terms in the directive are expected to be set at just 30 days and overdue invoices can incur an 8% interest charge and compensation of £35 for costs. The government has also pointed out that it may be able to reduce the payment threshold further to just 10 days. The MPs involved have said that the directive is aimed at those who operate small businesses and for sole traders. These rules will apply to those at the top of the chain such as the suppliers and to those at he bottom such as sub-contractors. All will expect to be paid within the statutory time scale. In addition the application of compensation for late payments will be automatic so that suppliers will have no fear of losing clients because they impose the fee.

Other popular articles related to this one include: PPI Compensation Seekers De-Frauded, NHS Negligence Compensation Problems, Financial Services Compensation Scheme, Gender Discrimination in the Workplace, Unfair Dismissal Law Changes, Insurance Compensation Claim Fraud, Asbestos Compensation Claims, and . Please let us know if you find any errors.

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