Compensation firm backs MS campaign

Endowment compensation firm Brunel Franklin is backing Mortgage Strategy’s Stop the Rot campaign to rid the industry of rogue complaint management firms.

Brunel Franklin is working with the Claims Standards Council to ensure the Compensation Bill is passed and the sector is regulated this year.

Ian Allison, claims director for Brunel Franklin, says his company – along with over 100 members of the CSC – is pro-regulation, but there are still firms that are taking advantage of vulnerable customers.

Allison says: “Some firms are encouraging a ‘have a go’ culture. It is these companies that have caused the problems for which the Compensation Bill offers a solution. If it is passed it will hopefully put an end to rogue firms and individuals taking advantage of vulnerable people.”

The CSC knows of 54 firms operating in the endowment complaint market but the real figure is likely to be much higher.

Which? magazine carried out research among endowment firms and found that some of their websites contained statements about how complex the complaints system was and that most complaints handled by consumers themselves fail.

Which? says these statements are designed to put people off making complaints themselves and are often not true. It also found there was little difference in the service being offered by expensive firms.

Brunel Franklin charges 25% of the settlement plus VAT from the policy seller if it is successful.