Two-thirds of people are satisfied with the service they get from claim-chasers and believe they get value despite paying as much as a third of compensation in fees, says the Financial Services Consumer Panel.
It is calling on the Government to pay closer attention to the activities of endowment claim companies when regulation of claim firms is introduced next year.
It says consumers are aware that most firms operate on a no win, no fee basis but the level of fees charged and the way the customer is told about the fees are not always clear.
Panel chairman John Howard says: “This needs to be considered as the Government starts to regulate this arena.”
FSCP research published this week shows claim firms typically charge between 20 and 30 per cent for a successful claim but two-thirds of consumers think they have received value for money.
Howard says many people accept this because they do not have the time or confidence to pursue a claim themselves.