MoneySavingExpert.com and Which? have found people vulnerable to exploitation by unscrupulous claims management companies (CMCs).

New figures from Which? and MoneySavingExpert.com reveal that consumers are turning to CMCs because they don’t know how to claim back mis-sold payment protection insurance themselves for free.

The news comes as Which? and MoneySavingExpert.com launch a new campaign to increase awareness of how easy it is for consumers to reclaim mis-sold Payment Protection Insurance (PPI) for free and to tackle head on those unscrupulous claims management companies who exploit consumers wanting to claim back their money.

MoneySavingExpert.com’s Martin Lewis said: “Sadly PPI has become a cash bonanza for unscrupulous claims companies, who through a series of lies and misdirection are persuading people they are the only option for getting their PPI money back. Even I’ve been texted to be told I’m owed £3,000 PPI – though I’ve never had the product.

“If people make a rational decision to give a huge 30% of what they’re due to a claims handling company in full knowledge they could do it themselves – I’ve no problem. Yet sadly very few are in that position. Many are persuaded under false pretences and the dire lack of regulation means it’s tough to tell legit firms from the rest.”