View more on these topics

BBA: Banks are to blame for claims management firms

Natalie Ceeney, chief executive of the Financial Ombudsman Service, says banks are to blame for an influx in claims management companies.

Speaking at the British Bankers’ Association conference today, Ceeney says it is concerned about a lack of regulation of claims firms and the problem is set to get worse if banks do not tackle the problem.

She says if a number of the firms were banks they would have been struck off a long time ago.

Ceeney says claims firms were created when banks failed to address complaints about the mis-selling of mortgage endowments.

Ceeney told delegates: “In the last decade we’ve also seen the emergence of claims-management companies. In financial services, these companies were born out of mortgage endowment mis-selling. Now, three quarters of PPI complaints to the ombudsman involve claims-management companies. They didn’t create PPI mis-selling – but they have exploited the situation aggressively – and hugely to their commercial advantage.

“The opinions I hear expressed about claims-management companies range from the unprintable to the view that they’re “a more powerful corrective force than the regulator”. But what everyone seems to agree on is that they are undeniably a powerful force in the market that can’t be ignored.

“The best way to tackle the problem is for banks to remove customer detriment and make the complaints process easier to use.”



Shared equity deal will just be a debt trap for first-timers

I read Mortgage Strategy reporter Tessa Norman’s blog about Castle Trust’s shared equity scheme last week and was unimpressed by the deal. It will offer borrowers who have a 20% deposit an additional 20%, so they can access a 60% LTV deal from another lender. When the property is sold or the mortgage term ends, […]


Network purchases bode well for market

The ink is just drying on Countrywide’s cheque for the Mortgage Intelligence and Mortgage Next networks, but it seems the firm is determined to penetrate the market further. It recently announced that it is launching a high net worth brokerage with Mortgage Advice Bureau. It remains to be seen how successful this venture will be […]

Health - thumbnail

Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


News and expert analysis straight to your inbox

Sign up