There is little more frustrating than the arrival of a text message from a claims management firm asking if you have been mis-sold payment protection insurance.
New figures from the Ministry of Justice, which is supposed to regulate these firms, show that they shut down 209 rogue claims management firms between April and November last year.
Another three firms had their authorisations suspended and 140 received a warning.
Whilst PPI mis-selling has been big business for these firms, you don’t need to use their services.
Consumers who have been mis-sold a regulated financial product, such as insurance on loans, can and should make claims directly.
In the first instance, write to the regulated firm which sold the product to express your dissatisfaction. If you are unhappy with their response, you can then refer your complaint to the Financial Ombudsman Service.
All regulated firms must handle complaints from their customers fairly, with guidelines for complaint handling set by the Financial Services Authority.
The complaints process with the Financial Ombudsman Service has been developed specifically for consumers, so there is never a need to use the services of a claims management firm who will take up to 30% of the compensation you would have received anyway for doing very little.
We hope to see more rogue claims management firms shut down by the Ministry of Justice in 2013, with a particular focus on those that send unsolicited text messages or use cold calling to drum up business.
If you are approached by a claims management firm, just say no and make any complaints you have about unsuitable products directly to the provider yourself.
Photo credit: Flickr/a.cantu
