Crystal Legal Services, a claims management company (CMC), has seen off a challenge from Lloyds Banking Group to one of its PPI adverts after three other CMCs had fallen foul of complaints by the bank.
The number of complaints about claims management companies received by the Legal Ombudsman in the first six months of this year has hit almost 9,000 – a far higher amount than expected. However the number actually investigated was lower than predicted.
A “fundamental review” of claims management companies – along with a cap on the fees that they can charge consumers – was announced by Chancellor George Osborne in today’s Summer Budget.
Only 4% of complaints about claims management companies (CMCs) received by the Legal Ombudsman (LeO) relate to personal injury work, it has emerged, in the first release of figures since Leo began its new role.
A Bradford-based payment protection insurance claims management company, has been wound up by the High Court, following an investigation by the Insolvency Service.
The Claims Management Regulation Unit is “still not tough enough” in tackling the behaviour of financial services claims management companies, a leading consumer credit specialist has said.
Some claims management companies (CMCs) are using special pre-submission arrangements with the major banks to avoid investigating PPI cases, it has emerged.
The message that consumers do not need to use claims management companies to make complaints about mis-sold payment protection insurance is not getting through, the Financial Ombudsman Service admitted yesterday.
Claims management companies have pocketed up to £5bn of the £22bn of compensation secured by consumers for mis-sold payment protection insurance, according to an analysis by Citizens Advice.
The turnover of claims management companies spiralled 31% last year to top £1bn, with the turnover for the financial claims sector exceeding that of personal injury companies for the first time, Ministry of Justice figures have shown.