The loss of 200 licences by rogue claims firms, as revealed by the Ministry of Justice, is good for consumers but banning the industry from cold calling would provide further necessary protection says Citizens Advice.
Citizens Advice Chief Executive Gillian Guy said: “Some consumers have been hit with a double rip-off, first by the banks who mis-sold PPI and second by bad claims firms. People have lost money, wasted their time and been utterly let down by claims management companies that aren’t up to scratch. It is good for consumers that the industry is rid of more menacing firms as 200 licences are lost thanks to action from the regulator. “Citizens Advice found over 30 million people have been contacted out of the blue by claims management companies. Not only is this a nuisance, our evidence shows people often feel under pressure to sign-up and firms aren’t always up front about how the service works. Banning the industry from cold calling would protect more people from predatory claims management companies, then a call out of the blue would be a clear sign that this firm is not to be trusted.....Read more here