MSE News: Letter to Ken Clarke demands tougher PPI claims regulation

There is an annoying tv ad as if it is a public service announcement. (important announcement)

I'm still getting bombarded with annoying emails which I thought was illegal.


It wouldn't be so bad if the fee reflected what it cost the cmc's + a reasonable profit BUT at a % it's money for old rope in their eyes!!! The wonder they are using these marketing practices or pulling the wool over peoples eyes!!!

They are the scum of the earth. TV channels don't help happily advertising these vultures even between kids cartoons. I have reported many a 'claims' company for spamming my email and mobile. Even though the MOJ shut down 700+ of these companies they need tougher regulation. In my eyes these claims companies are committing what is akin to fraud, claiming they can help when all they do is take 'clients' money off of them when the client does all the work!

It has come to the point I sign each claim company up to each other with fake PPI claims using thier emails and phone numbers.....

I think MSE has singularly failed to hit the nail on the head over this issue.

Agreed, the PPI claims companies' behaviour is questionable by helping themselves to a large proportion of the compensation for little effort on their part.

The fact is the PPI scandal is long running because the Financial Services Ombudsman and the Financial Services Authority were asleep on the job. Both these parties must have been aware of PPI mis-selling pretty much from the outset and both failed to do anything at the time. Then when the consumer complaints started to roll in they did nothing then either.

The result? A massive £9 billion compensation issue. That is a big liability for banks which could make them insolvent if it had to be paid immediately. It is also £9 billion taken out of people's savings and out of the economy where it should be spent.

I would hope the MSE might write a similar letter demanding Parliament takes immediate steps to make the FSA and FSO properly publicly accountable.

The main cause of the problem is not the behaviour of the PPI claims companies, it is the behaviour of the FSA and FSO in allowing the problem to become large and not resolving it promptly.

Frankly, I would like to see one or two banks put into administration until the compensation is paid - or they are wound up. The banks should not be protected by the FSA or FSO who clearly make decisions that are not based on the rule of law. Every time the the facts are in dispute both the FSO and FSA side with the Financial Services Industry. Or if there should be a Financial Institutions' service should meet a reasonable standard, the FSO standards are so vague and unspecific they are rendered meaningless.

So why does not the MSE demand the FSO and FSA are more publicly accountable for this problem - and the many others in the pipeline?

For example, levying unagreed charges, investment products being sold on the basis of fees paid to advisors, banks failing to send regular statements, failing to report fraud in a timely manner - and the list goes on and on.