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BSA conference: FSA blasts claims firms and calls for action

The Financial Services Authority yesterday branded claims firms a huge nuisance and called on the Ministry of Justice to take action against them.

Speaking at the Building Societies Association conference in Manchester yesterday Martin Wheatley, chief executive officer designate of the Financial Conduct Authority, says claims firms are unnecessary.

He says: “We are happy that everyone is dealing with claims properly.

“Consumers don’t need claims firms but they have been aggressive with their marketing and made extravagant claims so they do need action against them.”

Wheatley says the Ministry of Justice is struggling to find an industry standard to judge such firms.

He adds: “They are a nuisance, a huge nuisance.”

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  • Peter Turner 10th May 2012 at 11:41 am

    After dealing with a series of complaints about the supposed misselling of PPI policies that did not exist and failing to comply with FSA rules which only came into force years after the supposed missale I have found some ammunition to hit back:

    The MOJ issued a bulletin to CMCs in February which can be found at http://www.justice.gov.uk/downloads/claims-regulation/cmr-bulletin-feb-2012.pdf

    It tells CMCs to follow guidance issued by FOS at http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/ppi-CWletterC.pdf.

    That guidance in turn requires the CMC to have “Completed the payment protection insurance consumer questionnaire as fully as possible – and sent it to the financial business to help it assess the complaint.” (i.e. the FOS PPI questionnaire should be sent with the complaint).

    The MOJ also says “We fully support the guidance issued and will be checking compliance.”

    So now my first move when I get a complaint from an ambulance chaser without the questionnaire is to send them an e-mail asking why they have not complied with the instructions of the MOJ and copying it to business@claims.gov.uk