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Financial claims can end in tears

The problem with get-rich-quick schemes is that they rarely fulfill their promises. The idea that you can make oodles of dosh without lifting a finger has obvious appeal but obvious flaws too. If something seems too good to be true, it probably is.

The latest manifestation of such schemes is the financial compensation claim. I’m sure you’ve come across them many times already.

Consumers hit with big bank charges, sold inappropriate payment protection insurance policies or chased for late payments by lenders using unenforcable loan agreements are being encouraged to fight back to make money.

But the truth is that managing claims is not a walk in the park. Cases can be complex, take a long time to resolve and don’t come with guarantees of success.

Financial companies don’t just roll over and pay out the moment lawyers comes knocking. They fight hard, use the best legal minds in town and are prepared to contest cases in court if necessary.

I would not be surprised if in a few years’ time we see legal firms suing brokers and other lawyers for claims that were badly handled. If this happens there could be plenty of press coverage condemning the greedy brokers involved.

The Ministry of Justice and the Office of Fair Trading have recently warned consumers to think twice before jumping into bed with claims management companies. I may not have the authority of those government departments but I echo their concerns. It could end in tears.


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