Lakey joins MoJ in ambulance chaser fight
IFA Alan Lakey is to meet with senior officials from the Ministry of Justice to discuss claims management companies that fish for business by issuing bogus complaints.
Mr Lakey, partner for Hertfordshire-based Highclere Financial Services, said officials from the MoJ’s claims management regulation unit are coming to London on 20 June to meet him and PanaceaIFA founder Derek Bradley.
They will discuss the problem of CMCs issuing spurious complaints, which have become more prevalent in the wake of the payment protection insurance mis-selling scandal.
Mr Lakey said: “I will talk about the CMCs that have tried to defraud me of money, and of the way CMCs fish for business in the hope they catch something. If they get a sniff they wing it up to the Financial Ombudsman Service, leaving it to Fos to decide, and people like me are hit with a £500 case fee.
“Not only is it a thoroughly inappropriate way to do business, but it is expensive.”
Mr Lakey wrote to Kenneth Clarke, secretary of state for Justice, in February, stating concerns over CMCs.
He said: “I got a letter back from Mr Clarke this month, saying I raised serious concerns about the conduct of regulated claims management companies and that the MoJ would like to meet with me.”
A spokesman for the Ministry of Justice said: “We have already conducted more than 50 audits, we have issued seven warnings and have taken on other forms of enforcement action against CMCs.”
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