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MSE News: Claims management firms face new clampdown

"Claims management companies will have to agree all customer contracts in writing before taking a fee under new rules..."
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Claims management firms face new clampdown


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  • I wholeheartedly agree with Wendy Alcock, particularly where PPI mis-selling is concerned – cold-calling by claims management companies and upfront fees should be banned; charges should be based only on cash received at payout; contracts should always be written and signed; and clear information on risks always given. In my view cold calling, unsolicited emails and spam texts are a modern-day plague that should be stamped out by the claims regulator.

    But none of this should take away from the fact that PPI was mis-sold on a massive and unprecedented scale by organisations we should have been able to trust. And let’s not forget that in 2012 Natalie Ceeney, head of the Financial Ombudsman Service, told the Parliamentary Treasury Commitee that banks were wrong in 25% of cases where they originally told their customers no PPI existed. How many ordinary people have thrown in the towel as a result of being misled by their bank at the very first hurdle?
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