PPI scandal looms large

The Solicitors Regulation Authority (SRA) has threatened regulatory action against any law firms that take on payment protection insurance (PPI) claims that people could have conducted themselves. The warning comes this week as an SRA review on PPI reveals that 80% of firms doing PPI claims work routinely charge fees of more than 25% of the redress they receive, with some charging up to 50%. The SRA considers charging more than 15% unreasonable. Paul Philip, SRA chief executive, said firms unable to demonstrate that they are acting in the best interest of their clients could be subject to regulatory action.