Saturday, July 13, 2024

UK households hit with unexpected £625 bill due to missed ‘small print’

Beware of “Sneaky” Small Print: Millions Left in Debt Over Claims Management Firm Fees

Are you one of the millions who have been left in debt over a “sneaky” small print that could leave you hundreds of pounds out of pocket? If so, you’re not alone. Borrowers who use claims management firms to help them get compensation for un-affordable lending are finding themselves in a tough spot, according to consumer groups.

Claims management firms are meant to handle your compensation claim for you, charging a fee for their services. They typically operate on a “no win, no fee” basis, meaning they only charge you if your claim is successful. However, some claims firms might just help you get a bill wiped, leaving you to pay out of pocket for their services.

One customer shared his experience with a claims firm that billed him for £625, 48% of the £1,303 credit he received from the provider to wipe his balance. “I’m completely stuck at what to do, there is no way I can afford to pay them as I’m currently on a debt management plan with more financial worries,” he said.

Sarah Coles, head of personal finance at Hargreaves Lansdown, warned that the cost of claims firms can come as a “horrible surprise.” She emphasized that in many cases, people are only making these claims because money is tight, so paying a claims firm can push them further into financial difficulty.

Coles advised that it’s possible to make a claim yourself and recommended speaking to a charity like Citizens Advice for guidance. By taking control of the process, you can protect yourself from a nasty financial surprise and avoid falling into deeper financial trouble.

Don’t let a claims management firm add to your financial woes. Take charge of your compensation claim and seek help from reputable sources to navigate the process effectively. Your financial well-being is too important to risk on unnecessary fees and surprises.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The content is based on general research and may not be accurate, reliable, or up-to-date. Before making any financial decisions, it is recommended to consult with a professional financial advisor or conduct thorough research to verify the accuracy of the information presented. The author and publisher disclaim any liability for any financial losses or damages incurred as a result of relying on the information provided in this article. Readers are encouraged to independently verify the facts and information before making any financial decisions.

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