Richard Lloyd, Which? executive director said:
“This is a positive result for consumers. We have been calling for the Legal Ombudsman to handle complaints about Claims Management Companies (CMCs) as it means consumers who have been treated badly will get access to some form of compensation.
“However, we want to see the Government do more to clean up the CMC industry. We want a ban on upfront fees and cold calling, and for CMCs to be required to publish online all of their terms and conditions, fees and charges. Far too often consumers are being ripped off by unscrupulous CMCs, when they can easily reclaim the money by themselves for free.”