Claims firms are acting “irresponsibly” by chasing the Financial Ombudsman Service for updates on payment protection insurance complaints, says the Ministry of Justice.
In a bulletin to claims firms published this week, the MoJ says some firms are sending routine, scheduled requests to the FOS for updates on complaints.
It says these are unnecessary and will cause delays to the service.
The MoJ says: “Many of these enquiries are being made before deadlines for financial businesses to respond and timeframes for making payments to customers have expired.
“Such conduct is irresponsible and a potential breach of the rules. Claims firms should provide information about the process and timescales in order to manage clients’ expectations but should only chase progress from the FOS in exceptional circumstances when such action can be justified.”
The MoJ also issued a reminder to claims firms that some firms are still failing to deal with complaints made against them by telephone.
It says: “Enforcement action will result if you insist that clients put their complaints in writing and/or fail to treat complaints made by telephone in accordance with your complaint handling procedures.”
In a separate bulletin on marketing, the MoJ warns a number of claims firms are failing to provide accurate information about their services when telemarketing to consumers.
It says in some cases, firms tell customers they will undertake a “financial review”, when in fact they only provide PPI misselling claim services.