The government to get tough with claims firms
Claims Management Companies (CMC`s) are to face much tougher regulation to make sure consumers are not hard done by under proposed new rules issued by the Ministry of Justice (MOJ)
It is clear though that many of the rules set by the claims regulator are not being followed, including making the client aware they can do a ppi claim themselves, issuing clear and concise terms and conditions and keeping customers updated on the progress of their claims. The MOJ says some CMC`s do not even use written terms and conditions which often leads to disputes with customers when it comes to paying their fees. Under the new rules however, any consumer who wishes to make a complaint about a claims company will have that complaint looked at by the Legal Ombudsman who will have the power to offer compensation. Other changes could include a ban on cold calling, text messages and upfront fees.
"With any complaints now going to the Legal Ombudsman instead of the MOJ, who didn`t have the power to issue compensation, it means any firms not doing right by their customers will be hit hard in the pocket. That should help weed out the cowboys and the sooner the changes come in the better. My advice to anyone wishing to use a claims company for a ppi reclaim, mis sold mortgage, mis sold investment or any other type of claim is to follow these simple rules:
Have you been cold called or sent a random text? You may be best to avoid this type of firm
Try to use a firm that has been recommended to you
Shop around as fees can vary significantly
Make sure you do not pay an upfront fee and that you get to see the terms and conditions before signing up
Has the claims firm made it clear that you can submit a claim yourself? Even though you may not want to, this will at least tell you they are following the rules
The changes to the rules are now at discussion stage with a view to implementation in early 2013.
About The Company
Credit Claims Ltd was established in 2008 by a team of former bankers to get justice for consumers unfairly treated by their banks and other financial institutions.
The company specialises in helping people get compensation for mis sold ppi, mis sold investments and mis sold mortgages. Its success has been recognised with awards at the Bolton and Bury Business Awards in 2011 and 2012 in the category of customer excellence.