Ridding claims industry of bad firms good for consumers

The loss of 200 licences by rogue claims firms, as revealed by the Ministry of Justice, is good for consumers but banning the industry from cold calling would provide further necessary protection says Citizens Advice.

Citizens Advice Chief Executive Gillian Guy said:

“Some consumers have been hit with a double rip-off, first by the banks who mis-sold PPI and second by bad claims firms.  People have lost money, wasted their time and been utterly let down by claims management companies that aren’t up to scratch.  It is good for consumers that the industry is rid of more menacing firms as 200 licences are lost thanks to action from the regulator

“Citizens Advice found over 30 million people have been contacted out of the blue by claims management companies.  Not only is this a nuisance, our evidence shows people often feel under pressure to sign-up and firms aren’t always up front about how the service works. Banning the industry from cold calling would protect more people from predatory claims management companies, then a call out of the blue would be a clear sign that this firm is not to be trusted.

“Anyone looking to make a claim for mis-sold PPI can contact their bank directly, that way they will avoid the trappings of poor claims companies and keep all of the compensation they’re entitled to. Citizens Advice has free materials to help people make a claim including template letters.”

Research from Citizens Advice last year found over 30 million people said they have received an unwanted telephone call, text, email or letter about claiming for mis-sold Payment Protection Insurance (PPI).

Notes to editors:

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.