After hearing from scores of brokers who are wasting time and money dealing with spurious claims related to payment protection insurance, Mortgage Strategy is urging brokers to sign its e-petition and lobby their local MPs.
Our Make Claims Firms Pay petition says firms should be forced to pay a £500 fee to the Financial Ombudsman Service for every claim of mis-selling against a broker or financial adviser that is deemed to be without merit.
The e-petition will close in six months and if it gains 100,000 signatures will be considered by the government for debate in the House of Commons.
Robert Sinclair, director of the Association of Mortgage Intermediaries, says the campaign will help to raise awareness of the problem brokers face regarding claims firms.
He says: “We would expect professional claims firms to only take on cases that have a good chance of success and believe they should make a contribution to FOS costs.”
Sinclair says a change in the law under the Financial Services and Markets Act would be required if claims firms were to pay the FOS fee and this could be achieved by inclusion in the Financial Services Bill, which is in its draft stages.
Brokers pay a £500 fee to FOS for the fourth claim they receive each year and every claim thereafter, although FOS says it will not charge in cases where PPI has not been sold.
The e-petition has been checked by the government and is now live on its site.