The Financial Services Compensation Scheme has issued a warning over a claims management firm which is using the scheme’s name as part of its online advertising.
In a consumer alert on the FSCS website, the scheme raises concerns that the claims firm could be misleading customers.
The alert says: “A claims management company is using the initials of the FSCS in its online advertising. This may mislead consumers. FSCS is not connected to the company, which charges for its services.”
The firm is not named by the FSCS.
However, anyone googling the phrase “FSCS” will be confronted with an advert and link to the website of claims firm Professional Personal Claims as the first sponsored search. The firm was unavailable for comment at the time of going to press.
The FSCS says it will be contacting the firm regarding the advert.
The FSCS estimates consumers pay a total of £12m in fees to claims management firms each year.
Whilst the FSA introduces rafts of regulations and restrictions to combat the perception of bias and mis-selling we have these parasites rampaging and defrauding and the MOJ seems reluctant or impotent.
The shame is that FSCS is not a little more consumer-friendly. Affected savers should not feel the need to use claims management companies for accessing FSCS services.
This has nothing to do with the MOJ, the FSA or the ASA. If Google allow companies to bid on brand names and other companies names then this will happen (and probably produce alot more awareness of the FSCS, than their won advertising!).
We have had to start Google advertising on our OWN name as many competitors are bidding on our name and there is not a thing we can do about other than try and out bid them and make Google even more money!
This is sort of action is not limited to financial services and is certainly not limited to CMC’s. Probably not as wide spread in the IFA market but that may be something to do with IFA’s not being that switched on and not being that competitive (but having a good moan when someone else is).