‘Urgent action is needed to tackle spurious complaints’
Bob Young, managing director of CHL, said the firm had seen an increase in complaints about PPI, although it did not even sell it to customers.
He said: “Unfortunately I suspect this trend will continue at least in the short term until there is a great clampdown on the practice of generating complaints simply for the sake of it.”
CHL decided to publish its complaints data for the first half of 2012, despite having fewer than the 30 complaints that would require disclosure by the Financial Ombudsman Service.
In this period, Mr Donaldson said CHL received 95 complaints, of which just 5 per cent were upheld in favour of the customer.
Of those complaints only two were referred to the Fos, one of which had already been decided in favour of CHL.
Mr Donaldson said: “Complaints across financial services appear to be on the rise so it is even more important that they are handled correctly and taken seriously. Clearly we work to keep complaints to an absolute minimum but this is proving difficult, particularly with the work of claims management companies and the growing trend for spurious complaints.”
The ministry of justice has said it would monitor rogue claims management companies following complaints by IFAs in recent months.
Chris Hulme, director of Manchester-based the Clayton Hulme Partnership, said: “Most claims letters are nothing more than throwing mud at walls and hoping it sticks. That is the exact reason the ministry has put claims management companies under the spotlight.”