CONSUMERS who were mis-sold payment protection insurance have been told to avoid claims management companies from the UK that are offering to get them a refund for a fee.
The Central Bank said there was no need to use a claims management company as consumers would be automatically compensated by their banks if they had been mis-sold the insurance.
Payment protection insurance is a type of cover that repays your loan, mortgage or credit card should you lose your job, have an accident or die. It is separate to mortgage-protection insurance, which lenders insist homeowners take out.
There have been reports of claims companies targeting people who may have bought payment protection, seeking to represent them for a hefty fee.
Up to 70,000 people are set to get refunds worth up to €2,000 each because they were mis-sold the PPI. Some 340,000 people bought the products between 2007 and 2011.
As many as one in five of those who took out these products in the past five years are likely to have been victims of the insurance scandal, experts said.
The Central Bank has told AIB, Bank of Ireland, Ulster Bank, Permanent TSB, EBS and American-owned GE Money to review their sales of payment protection since 2007. One other unnamed finance firm has also been told to examine its sales of the product.