The trade body for claims firms has attacked Which? and MoneySavingExpert.com for siding with banks after they and the British Bankers’ Association wrote to the Ministry of Justice calling for tighter regulation of claims companies.
The three bodies have written to justice secretary Ken Clarke, complaining that there is evidence of rule breaking by claims firms and calling for urgent action to improve their regulation by the MoJ.
Claims firms have been criticised for charging up to a third of the compensation payouts as a fee when consumers can submit claims to the Financial Ombudsman Service for nothing.
Andrew Wigmore, policy director at the Claims Standards Council, says the consumer groups should be ashamed for siding with the banks.
He adds that the MoJ is aggressive in trying to stop abusive practices by claims firms that break the rules.
He says: “For organisations that pride themselves on consumer protection and who have campaigned for consumer rights to side with the banks on this issue is disgraceful.
“Their action to protect the banks against the consumer right to make a claim shows breathtaking ignorance and a total disregard for the consumers they profess to protect.”