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Claim chasers are cherrypicking profitable clients

You may recall that a few months back – when I did a bit of mystery shopping of my own – I raised awareness of the ethics of some endowment claims firms offering no win, no fee services. This was defended by other such firms maintaining that all claims firms should not be tarred with the same brush.

I was interested to read the introduction pack of the firm claiming to be “market leader in endowment claims, with the largest history of successful claims” (you know the ones, with the smiling timebombs). Are other IFAs aware that it is no longer willing to defend somebody whose endowment value is less than 15,000 or if it was written by a small IFA?This brings two points to mind. First, if the Financial Ombudsman Service takes a view that there is a need for such companies to assist those policyholders who are unable to put their own case forward, is it aware that such companies are now cherrypicking their potential customers?The little old lady in the street will no longer be able to get such help due to the value of her plan being low or because it was sold through a small IFA.

Second, it appears to me that this company is only looking to achieve a quick buck from large organisations which continue to accept liability for missales without putting up a fight, thus earning it a very nice 25 per cent plus VAT of the compensation paid and more in some circumstances.

So, well done all of you who have and continue to stand up to endowment claims companies when no missale has taken place. Maybe some of the larger firms could learn from our stance and make these ambulance chasers work for a living. No win, no fee, still no ethics.

Barry Johnson Senior partner,
Barry Johnson Financial Services,
Blisworth,
Northampton.

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