Financial Ombudsman Service chief executive Natalie Ceeney says she shares the industry’s concern that claims management firms should be subject to tougher regulation.
Speaking at the British Bankers’ Association international banking conference in London today Ceeney (pictured) acknowledged that many consumers feel they do not have the time or ability to bring a complaint themselves, which is why they turn to claims management firms.
But she said: “There are very variable practices among these companies – including some sharp practice from those who ‘cold call’, promising ‘no win, no fee’ inducements to potential customers, some of whom may have no reason to complain. And we know that some claims management companies fail to check even the most basic of facts, such as whether the product complained about was bought.
“I hear widespread agreement – from industry and consumer groups alike – on the need for stronger regulation of the claims management sector. We share this view.”
Ceeney added if banks were to improve their own complaints handling process this would mean there would be less demand for claims management firms.