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Chaser claims Hunt has vendetta against sector

Brunel Franklin has hit out at Lord Hunt’s call for a crackdown on claim-chasers, suggesting he has a “vendetta” against the sector.

Speaking to Money Marketing at the Claims Management Company Conference in Manchester last week, Brunel Franklin managing director Anthony Sultan said Lord Hunt’s call for a case fee for vexatious CMC claims showed his dislike of the industry.

Sultan said: “Even after the Compensation Act was introduced, Lord Hunt was still critical of claims management companies. When a consumer feels they have been wronged, it is not a vexatious complaint. They come to us for our expert knowledge and experience in getting to the bottom of claims.”

But Lord Hunt says while he voiced concerns when CMCs were not regulated and played a part in establishing a new system of statutory regulation, he supports the work of the industry. He says: “I strongly support the rights of anyone with a valid claim to be given help to voice that claim. Nobody has anything to fear if their cases are fair and reasonable.”

Sultan also attacked the Financial Ombudsman Service for its handling of professional indemnity insurance complaints, claiming its decisions are inconsistent.

He said: “I do not believe the FOS has got to grips with what PI insurance involves. Decisions often depend on which adjudicator is assigned to a case and in many cases the outcome is wrong.”

A FOS spokesman says there are a number of procedures to avoid such situations and to address problems if they arise. He says: “We do have a clearly defined appeal process, so if a consumer or a company feels the decision is inconsistent, it will go through to an ombudsman.”

Letters, p39

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