The Financial Services Compensation Scheme has warned consumers about a claim management firm which is using the FSCS initials as part of its online advertising.
In a consumer alert posted on its website last week, the FSCS says it is concerned that the claim management firm, which it does not name, is misleading customers. The alert says: “A claim management company is using the initials of the FSCS in its online advertising. This may mislead consumers. The FSCS is not connected to the company, which charges for its services.”
When Money Marketing entered FSCS into Google, the first sponsored search that appeared was an advert and link to the website of claim firm Professional Personal Claims. The link opens a page titled FSCS, which gives information about the claim process.
The firm was unavailable for comment at the time of going to press.
The FSCS estimates consumers pay a total of £12m in fees to claim management firms each year. Its figures in January show that between 2008 and 2011, over three-quarters of the 21,575 consumers who submitted payment protection insurance claims did so through a claim management company.
Bloomsbury Financial Planning partner Jason Butler says: “Whenever there is money to be made, you will have claim firms coming out of the woodwork. I am pleased the FSCS has decided to warn people about this.”