Shepherd & West has urged consumers to be wary of terms and conditions when using claims management companies.
The compliance and audit firm says many borrowers who have been sold insurance contracts alongside a number of loans, including secured loans, hire purchase agreements and car finance, were entirely unaware an insurance product had been added to the agreement.
It states a lot of people are now reclaiming the fees they paid for these mis-sold products.
Shepherd & West cites the example of a claims company advising a client to accept £2,500, when according to its own calculations the figure should have been more than £10,500.
Robert Brudenell, managing director of the firm, says: “We do not believe this to be a widespread practice, but it demonstrates that not all claims management companies calculate the refunds correctly, to the detriment to the client.”