The Ministry of Justice is warning claims management firms they face enforcement action if they do not deal with complaints properly.
In its June newsletter to claims companies, the MoJ, which regulates the sector, says it is in the process of issuing formal warnings to the worst offenders.
The newsletter defines a complaint as any expression of dissatisfaction, verbal or written, whether justified or not and insists all claims firms must have effective procedures in place to handle them.
The MoJ states: “It is apparent from the volume and nature of complaints we are receiving that many businesses are failing to properly identify and/or handle complaints.
“We treat failures to comply with the Complaints Handling Rules 2006 seriously and are in the process of formally warning the worst offenders. Those who fail to implement changes to improve their complaints handling will be subject to further formal enforcement action.”
The MoJ also highlighted a rise in claims firms targeting vulnerable customers and pledged firm action against these businesses.
It also reiterated its concern over the number of payment protection insurance mis-selling claims submitted where no policy has been sold.
It is currently auditing and investigating cases where businesses have an exceptionally high number of ’no PPI’ claims.