Response to consultation to clamp down on Claims Management Companies

The Ministry of Justice has today published a consultation to change the rules for Claims Management Companies (CMCs).

Which? executive director Richard Lloyd said:

“This consultation is long overdue, it’s a scandal that so many unscrupulous Claims Management Companies are still ripping off consumers who just want to claim back what is rightfully theirs. We’re pleased to see proposals to end verbal agreements and help for consumers who end up out of pocket after using a CMC to make a payment protection insurance refund claim.

“However, the Government is still not going far enough to clamp down on unscrupulous CMCs. We want to see a ban on upfront fees and tougher enforcement against misleading advertising, because we know many consumers are being misled into using a CMC when they can easily reclaim their money for free themselves.

“The Government must put pressure on the Information Commissioner to ban cold-calling. CMCs should also be required to be more upfront, publishing all the terms and conditions, fees and charges online and make this information readily available to customers.”


Notes to editors 

A quarter of people we surveyed this year said they didn’t know that CMCs take a fee, and only half knew that using a CMC would be no more successful than making the claim themselves.

Our free online tool enables consumers to get the redress they deserve when they have been mis-sold payment protection insurance (PPI).


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