Software boss calls for greater scrutiny of CMCs
Paul Clark, chief executive of Charter UK, said banks have made it easier to make claims and claims management companies were just adding to the stress for consumers.
He said: “Claims management companies are required to perform a series of checks with a consumer prior to submitting a claim. With such a high number of invalid claims being processed by claims management companies, I have to ask if they are doing these checks properly. Those who fail to adhere to this rule should be investigated by the ministry of justice and face punitive action.”
Mr Clark said banks had put technology in place and it was no easier to make claims and lodge complaints. He added: “We have always said there is a correct way of making a claim, and banks are now more prepared than they have ever been to respond and resolve them in a way that is efficient to them and fair to the customers.”
A campaign was launched last month by MoneySavingExpert.com and Which? to educate consumers on reclaiming PPI and avoid being exploited by unscrupulous claims management companies.
David Penny, managing director of Somerset-based Invest Southwest IFA, said: “There are lots of claims management companies that take upfront fees and do not add any value. Where a claims management company can add value is the second part.
“Any monkey can send off a letter but when the bank writes back and offers a lower amount, that is when a claims management company can make sure a claimant gets a fair deal. There is a genuine purpose for a decent professional to help”