Claims firms under fire over PPI
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Peter Griffiths, chairman of the Building Societies Association, has blasted claims management firms over payment protection insurance claims.
Speaking at the BSA conference in Birmingham last week, Griffiths told delegates that over 80% of claims are coming from claims firms and that the Ministry of Justice is scrutinising them closely.
He says: “Claims management firms are getting away with murder and it is a big concern for the sector. They are making claims that their clients don’t even know about.”
Robin Smith, chairman of Leeds Building Society, adds that claims firms are a menace for businesses.
He says: “Their impact is an unpleasant addition to the cost of running a business and a waste of management time.”
Smith called for the reintroduction of the champerty law, which banned the sharing of proceeds from litigation. The law, repealed in 1967, was designed to avoid frivolous litigation and claims firms would have been illegal before its repeal.
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