MSE News: Financial Ombudsman says 'don't use claims management firms'

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"Natalie Ceeney, who became head of the Financial Ombudsman Service in March, says firms often mislead consumers with false promises of success, while many take a large chunk of any compensation awarded ..."

Read the full story:

Financial Ombudsman says 'don't use claims management firms'

marshallka

MSE_Guy wrote: »

This is the discussion thread for the following MSE News Story:

"Natalie Ceeney, who became head of the Financial Ombudsman Service in March, says firms often mislead consumers with false promises of success, while many take a large chunk of any compensation awarded ..."

Read the full story:

Financial Ombudsman says 'don't use claims management firms'

Some have been saying it for so long on here already lol!!!

marshallka

Can we make a list of the worst offenders (without chat) and just a link to threads about them on here. (just to pre-warn perhaps!!)

maxdp

Think LOANCHECK need to be named and shamed because it was all no money from client. This was a lie. they told me once signed up through PIL that it could be up to £300 for disbursements. Also since they have ended business solicitors that are taking these cases on are taking on cases but changing the terms and conditions. I was told when first going with Loancheck through PIL that I would never pay any money whatsoever because PPI was on the Loan. Once it went to Solicitors one Solicitor ignored any type of conversation they are now being investigated by Sra. The other took the case on but the terms were changed completely and they changed the conditions as far as I can see to the usual No win no Fee case. It made a great deal of difference.

Because there were problems with loancheck and Solicitors were taking on work it all changed. I would not touch a claims management company with a barge pole.

DarkConvict

I couldn't agree more with the FOS statement, and the Ministry of justice as the regulator (yes not the FSA) should start shutting them down.

They lie, mislead, and over charge for a service that is generally either free or very cheap.
Look at the companies that have gone bust, they took £1000's in upfront fees and never provided a service to even check agreements and handle complaints. These companies prey on the one thing debt causes, desperation!

Desperation in itself makes people believe things that are easily seen by most of us as false as they are as the words says desperate to find a way out. The vultures pray on anyone they can preach to with no concern for the consequences of their actions, must be one of the few businesses to boom during the recession, like crime.... bloody crooks.

oakhouse13

The Financial Ombudsman Service competes against claims management companies for clients, as do all businesses that offer consumer advice, whether that is fee based, providing free advice and making money selling products and services to subscribers, or statutory services like the FOS.

The FOS has budgeted to hear 167,000 cases this financial year which all of us using financial services will pay for at £500 a time. In 2009 it heard 13,053 cases so I expect the FOS to be actively encouraging complaints to come its way to keep itself in business.

Personally I would much prefer a much smaller FOS and a much simpler relationship between consumers and financial service companies. A new age of responsibility where we all manage our finances for ourselves. Fewer products, simpler products, one basic bank account that consumers can manage for themselves and is all that they need as we leave the wrecking years of over spend behind.

marshallka

oakhouse13 wrote: »

The Financial Ombudsman Service competes against claims management companies for clients, as do all businesses that offer consumer advice, whether that is fee based, providing free advice and making money selling products and services to subscribers, or statutory services like the FOS.

The FOS has budgeted to hear 167,000 cases this financial year which all of us using financial services will pay for at £500 a time. In 2009 it heard 13,053 cases so I expect the FOS to be actively encouraging complaints to come its way to keep itself in business.

Personally I would much prefer a much smaller FOS and a much simpler relationship between consumers and financial service companies. A new age of responsibility where we all manage our finances for ourselves. Fewer products, simpler products, one basic bank account that consumers can manage for themselves and is all that they need as we leave the wrecking years of over spend behind.

I hear what you are saying but claims companies actually submit to FOS more than half the time anyway.

THOMAS123

An interesting article particularly given that 240,000 consumers have been charged upfront by Cartel, Ratio Money, Unfair Credit Direct, The Claims Warehouse, Loancheck ....... for claims that had no prospect of success.

These consumers were badly let down by the regulator(s) for over 2 years.

marshallka

THOMAS123 wrote: »

An interesting article particularly given that 240,000 consumers have been charged upfront by Cartel, Ratio Money, Unfair Credit Direct, The Claims Warehouse, Loancheck ....... for claims that had no prospect of success.

These consumers were badly let down by the regulator(s) for over 2 years.

Amazing how these firms managed to pull the wool over everyones eyes!!! In fact they deserve oscars....

swejoe

tell me about it got caught out myself company called redress claims wished id done my research first coldcalled me very persuasive silly me paid up front fee on cc i think they are legit after checking the net its just the way they go about it i think they drag things on so before u now it ur 14 days cooling of period has expired ,ive canceled by reg post and e-mail within the 14 day period still hadn"t recieved the pack they said they would send me phoned them up the day they got my reg letter confirmed they got my e-mail couldn"t confirm they got my reg letter of cancelation when i asked them when my fee would be refunded to my cc they wouldn"t say just tried to talk me round even after me canceling by letter and e-mail any way its in the hands of my cc co now who have passed all the info to their fraud dept .

marshallka

swejoe wrote: »

tell me about it got caught out myself company called redress claims wished id done my research first coldcalled me very persuasive silly me paid up front fee on cc i think they are legit after checking the net its just the way they go about it i think they drag things on so before u now it ur 14 days cooling of period has expired ,ive canceled by reg post and e-mail within the 14 day period still hadn"t recieved the pack they said they would send me phoned them up the day they got my reg letter confirmed they got my e-mail couldn"t confirm they got my reg letter of cancelation when i asked them when my fee would be refunded to my cc they wouldn"t say just tried to talk me round even after me canceling by letter and e-mail any way its in the hands of my cc co now who have passed all the info to their fraud dept .

They should not take an upfront fee BEFORE sending out information.

https://www.claimsregulation.gov.uk/userfiles/file/Regulators%20Warning%20-%20Upfront%20Fees%20and%20cold%20calling%20by%20telephone%20Revised%20August%202010.pdf