View more on these topics

CMC trade body slams calls for tighter regulation

The trade body for claims management companies has attacked Which? and for “siding with the banks” after the consumer groups and the British Bankers’ Association wrote to the Ministry of Justice calling for tighter regulation of CMCs.

The three bodies have written to Justice Secretary Ken Clarke complaining there is “significant evidence” of rule breaking by CMCs and called for urgent action to improve the department’s regulation of them.

CMCs have been criticised for charging up to a third of compensation payouts when consumers can submit their own claims to the Financial Ombudsman Service for nothing.

In October 2010, the BBA launched a judicial review challenging the FSA’s payment protection insurance redress measures, but the High Court found in favour of the regulator.

Claims Standards Council policy director Andrew Wigmore says the consumer groups should be “ashamed of themselves” for “siding with the banks” accusing them of trying to deny consumers choice in how they make their claims.

He says that the MoJ is “extremely aggressive” in trying to stop abusive practices by CMCs that do 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 utterly disgraceful, their current action to protect the banks against the consumer right to make a claim shows breathtaking ignorance and a total disregard for the consumer they profess to protect.

“The consumer is not stupid and they are fully aware that you can make a claim for free but they choose to use a third party, someone to fight on their behalf – that is the consumers choice. Are Which? and Lewis wanting to deny consumer choice as well? It seems so.”


James Chidgey to lead new-build team

James Chidgey, senior manager of corporate accounts at Nationwide, is moving jobs to lead the building society’s new-build proposition from July 1. Chidgey has spent more than 20 years managing the development of Nationwide’s intermediary distribution. He will now move to the new-build sector and work with builders and specialist brokers. Nigel Stockton, financial services […]

Contingency plans a must for your clients

Is it true? Is 50 the new 40? Well, far from looking forward to retirement and settling quietly into the twilight years, many 50 year olds will still have teenagers living at home and a hefty amount left to pay on their mortgage.


Rebalancing the economy comes at a price

Economic data released in recent months has been disappointing to say the least. Q1 gross domestic product figures put the UK back into recession along with several other European economies. The economic optimists keep dismissing the official output data and choose to emphasise the more upbeat business surveys.


DB transfer showstoppers

By Jim Grant, Senior Product Insight & Technical Support Analyst Transfers from defined benefit (DB) schemes are a bit of a hot topic just now. In this article we look at a couple of factors that could prevent a transfer from happening Equalisation of pensions Prior to the Barber case in 1990, DB pension schemes typically provided […]


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • We're all doomed!!!! 21st May 2012 at 9:50 am

    Andrew Wigmore should be addressing his member firms who send out piles of unsolicited emails and texts, the latest I received by text at 9.30pm last night, stating that “Our records indicate that you are owed £2,800 for mis-sold PPI from the last 10 years”

    What records are these, exactly, Mr Wigmore?

    How do you come by these “records”

    What Data Protection issues are you sidestepping?

    Or is this just complete nonsense?

    Actually, it’s the latter – so if OK to break all sorts of rules Mr Wigmore? – breach of the TPS, amongst them.

    Yes, I do believe your firms should be regulated far more tightly.

  • Jon Lord 17th May 2012 at 1:06 pm

    Wake up Wigmore – I think what Which? and Lewis are saying is that a large % of CMC’s are simply acting as a claim packager for a fee of 25%. i.e not actually doing any fighting on the customers behalf. You are correct in saying the customer isn’t stupid but they are hoodwinked.