View more on these topics

Editor’s comment of the week: End this claims farce

We have only ever done a handful of PPI policies and have not been authorised for general insurance now for more than five years. We took that decision because we are a B2B mortgage and loans master broker. It is not our job to sell insurance to the broker’s customer.
However, we get about half a dozen “complaints” a week from claim companies which are absolutely certain that their customer was missold PPI after we did not outline the terms, told them it was compulsory, did not tell them it was added to the loan etc, etc.

Not surprisingly, about 99.9 per cent of them never even had PPI.


How does a professional, regulated firm get away with representing their client without even getting some basic factssuch as “Have you actually got any PPI?” sorted out first? A solicitor would ascertain if there was any injury or loss before pursuing someone in an accident claim, so why can’t the claim firms be made to do the same?

Each “complaint” of course takes time to deal with and some of the firms want us to confirm in writing that the PPI was never sold.

I do not see why we should waste any money on postage when there is no complaint so it is an email or nothing from us.
If you went in to an electrical store and complained about the baked beans you bought and they said “we don’t sell baked beans” and you asked them to confirm that in writing, the men in white coats would be round in no time.

The entire claims industry is a farce. Disappointingly, many of the firms appear to be owned and run by former brokers and IFAs,many of whom were selling endowments, pensions and PPI in the past.

Rob Derry, Brunel Mortgages & Loans

Recommended

Are inflation-linked funds a good bet?

Inflation has fallen from its peak in September last year, so are inflation-linked funds losing their appeal? These funds aim to protect the value of capital and income from inflation by generating a return consistent with, or greater than, UK inflation. They often have exposure to inflation-linked bonds. The UK consumer prices index reached a […]

John Howard MM blog
33

John Howard: The regulator must end free banking

The new chairman of Barclays, Sir David Walker, is just the latest senior City figure to come out against free personal bank accounts. In the last few months we have also had Lord Turner, the FSA chairman and contender for next governor of the Bank of England, describing free-if-in credit bank accounts as a “central […]

11

Aviva to cut up to 800 UK jobs

Aviva is to cut up to 800 jobs in the UK as chairman John McFarlane embarks on a £400m global cost-cutting drive. The job cuts are likely to come from both the general and life insurance arms of the UK operation and are set to be completed by the end of 2012. The life insurance […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. I heard the other day that the latest tactic being employed by these scumbag CMC’s is to bypass the usual complaints process and go straight in with a threat of legal action. Why? Because they know that if there’s the slightest possibility of the complaint being upheld, most PI insurers will simply settle straight away rather than going to the trouble and potentially sizeable expense of fighting it in court.

    Whether or not the MoJ can outlaw such a tactic is moot. What the MoJ should outlaw, though, is CMC’s getting round the MoJ’s prohibition of cold calling by subcontracting it to unregulated “marketing” companies. It’s just predatory, low-ball, scavenging opportunism at its very worst.

    And still we don’t know why the FSA shucked off onto the MoJ responsibility for trying to regulate the activities of these low-life vultures.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com