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Readers back crusade to halt spurious claims

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Mortgage Strategy’s e-petition calling for claims firms to be made to pay for spurious claims gained almost 200 signatures in its first week.
Last week we launched our Make Claims Firms Pay campaign and set our government e-petition live.

The petition calls for claims firms to be forced to pay a £500 fee to the Financial Ombudsman Service for every mis-selling claim against a broker deemed to be without merit.

Currently, intermediaries have to pay a £500 fee to FOS for every fourth claim they receive every year.

The Council of Mortgage Lenders says that while it is unable to back Mortgage Strategy’s campaign, it regards claims firms as an area of concern.

Sue Anderson, head of member and external relations at the CML, says: “We would like to work with other relevant trade bodies to make sure that claims management firms do not inadvertently create a disadvantage for consumers or companies.

“We are concerned that consumers might not be aware that they can make a complaint directly to FOS for free without using a claims company.”

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Readers' comments (1)

  • It is important to remember that FOS do not charge a fee if they believe the case is vexatious or without merit.

    The key to stopping the claim firms is to make consumers aware that they are better to proceed with claims on their own. If this message can come across then these companies will start to struggle, or start to look for the next cash cow they can exploit. Packaged current accounts anyone??

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