BSA blasts claims management companies over PPI
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Peter Griffiths, incoming chairman of the Building Societies Association, has blasted claims management companies over Payment Protection Insurance claims.
Speaking at the BSA Conference in Birmingham Griffiths says over 80% of claims are coming from claims management firms and that the Ministry of Justice is looking at how they are working.
He says: “Claims management firms are getting away with murder and it is big concern for the sector. There are claims being made by them that their clients don’t even know about. It is a totally unsustainable situation that they remain unregulated.”
Robin Smith, chairman of Leeds Building Society, added that claims management firms are an absolute menace for businesses.
He says: “Their impact is an unpleasant addition to the cost of running a business and a wasteful diversion of management time.”
Griffiths also expressed concern over the retrospective action that the Financial Services Authority has taken over PPI claims echoing concerns of the British Bankers Association’s judicial review.
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Readers' comments (9)
Anonymous | 5 May 2011 2:20 pm
Now lets get this right Robin Smith - banks and building societies systematically miss sell ppi and rake in upto 75% of the premium as commission. They sell millions of policies to public sector workers that are paid when they are off sick with no excess period thus reducing the premiums dramatically. When clients query what they have been sold they are without fail told to go away. And the people that register claims are an unpleasent addition ? If you did not miss sell why have the courts ruled against you and banks are beginning to say they will not appeal ? If I robbed a bank I would go to prison yet when you rob a client that is ok ??
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Anonymous | 5 May 2011 2:32 pm
LOL Robin Smith - if we robbed a bank we would go to prison. Banks and Building Socs have systematically robbed clients using ppi mainly as a single premium. Personally I had 5 policies when I came to claim I found they were all worthless due to the notice period in my contract. It was explained that I could never have claimed and you also had 70% of my premiums in commission. When I asked simply for a refund your letter explained I did not have a leg to stand on. A claims company sent you a letter and within a week you returned all premiums all interest and gave compensation so the case did not go to the ombudsman
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Anonymous | 5 May 2011 5:09 pm
Banks and building societies dont mis sell PPI policies.
CMC's ARE regulated.
One of these statements is correct - shame Mr Griffiths doesn't know which one!
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Anonymous | 5 May 2011 6:02 pm
never been a truer word as above i have been waiting since nov 2010 for my money back how much longer do we have to wait
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Anonymous | 5 May 2011 6:02 pm
never been a truer word as above i have been waiting since nov 2010 for my money back how much longer do we have to wait
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Lorraine | 5 May 2011 11:55 pm
It's very unfair to tar all claims management companies with the same brush. Also, claims management companies ARE regulated - by the Ministry of Justice. Speaking of regulation - it's a shame that the FSA regulation of the banks doesn't seem to have done all consumers any favours. And the recent cause of the judicial review was due to banks rejecting new rules which meant that many mis-sold clients would receive the redress that they deserve. Seems that someone needs to take a good long look at their own back yard....
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Anonymous | 6 May 2011 9:46 am
Mr Griffiths and Mr Smith live in the same ivory tower as the banks and other lenders. It has been proved and legally backed that PPI mis-selling was rife. It made billions of pounds profit for lenders. Building Societies also participated in this as well as making handy profis on household block insurances. They also made excellent margins by widening the time between adjusting interest on accounts when a change in SVR was posted.
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C David | 6 May 2011 6:30 pm
Its just amazing that the banks et la have the nerve to bitch after being caught out. Not only should the pay up but they should compensate well over the meagre interest they pay. Next up for claims. Mis-representation of interest rates charged. Check you aggreements people.
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Tony | 29 Aug 2011 8:10 pm
As a REGULATED claims management company we go to great lengths to ensure we represent clients complaints accurately. We have a very large proportion of claims upheld which suggests to me that one us is doing things right!
www.crystallegal.com/blog
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