The Citizens Advice Bureau (CAB) has released its latest report on the claims management market and how it deals with PPI claims. It is calling on the government to stamp out bad practices that it says are rife in the claims sector.
The Citizens Advice Bureau (CAB) has released its latest report on the claims management market and how it deals with PPI claims. It is calling on the government to stamp out bad practices that it says are rife in the claims sector. It is hoped that the report will lead to changes which will help consumers making Payment Protection Insurance (PPI) Claims.
Cold calling and text messaging has come under fire from the Bureau. These methods have been widely slammed by consumer groups and members of the public, who see it as tantamount to harassment.
James Sandbach, the Policy Officer at the Citizens Advice Bureau explained: "Although 400 Claims Management Firms have been struck off or barred by the Claims Management Regulator, and many hundreds more operate without a licence, the rules governing how [Claims Management Companies] are allowed to operate do not prevent them from 'cold-calling' or 'cold texting' consumers or trading in names."
The Citizens Advice Bureau revealed that over 75% of adults in the UK have been contacted by text message or phone in regards to Mis-Sold PPI.
Unfortunately this means that cold calling and text messaging are the methods in which Mis-Sold PPI has come into the psyche of many Britons; the companies who carry out such practices are tarnishing the reputation of the whole industry. First impressions leave an indelible mark on many, so it is hard for other reputable Claims Management Companies to offer their services to open minds.
It is no secret that individuals who plan to pursue PPI Compensation can do so without a Claims Management Company. However, the process of contacting a bank or major lender to recoup money that they are owed can be a very daunting task to many. The prospect of bringing a bank to justice can seem impossible for the individual with little financial experience.
MoneySavingExpert News Reporter, Helen Knapham explained that receiving the money that you are owed in PPI Compensation is not just as simple as filing a complaint. With many banks wrongly rejecting PPI Claims, she revealed: "Banks and financial firms are wrongly rejecting Payment Protection Insurance (PPI) complaints, despite them putting billions of pounds aside to pay consumers"
It is therefore vital for people who believe that they may have been Mis-Sold PPI, but do not want to contact their bank or lender directly, to have access to well regulated Claims Management Companies. Allowing only those companies to operate that adhere to a strict set of guidelines, should help clear the sector of the `bad apples`.
Credit Claims' Operations Manager, Michelle Barrett explained: "I think the time is right for tighter regulation of the Claims Management industry. There is no doubt that the public are sick and tired of constant texts and calls offering PPI refunds. This has got out of control and needs to be stopped immediately. Claims Management Companies are needed to help the general public to seek compensation, where they have been hard-done by, but at the moment the good work done by most is being undone by the unscrupulous few."
About the Company: Credit Claims is an award-winning financial claims company. Experts in helping individuals get compensation for mis sold PPI, mis sold Investments and mis sold Mortgages.