Building societies have hit out at claims management firms, calling them “a menace” and accusing them of submitting claims without their clients’ knowledge.
Speaking at the Building Societies Association annual conference in Birmingham last week, Principality Building Society chief executive and new BSA chairman Peter Griffiths said: “About 80 per cent of the claims coming in for PPI are from claims management companies. They are getting away with murder and it is a big concern for the sector. There are claims being submitted by them that their clients do not even know about.”
Leeds Building Society chairman Robin Smith said: “Claims management companies are an absolute menace.
“Their impact is an unpleasant addition to the cost of running a business and a wasteful diversion of management time.”
Coreco director Andrew Montlake says: “The problem is claims management firms whip people up into a frenzy regardless of what actually happened.
“I am sure there has been a lot of misselling going on but the way claims management firms approach the situation does not help.”