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Sesame blames claims firms for complaints hike

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Sesame Bankhall Group chief executive George Higginson

Sesame says claims management companies are to blame for the number of complaints against the network going up by 87 per cent year-on-year.

Data from the Financial Conduct Authority, published yesterday, shows Sesame had a total of 1,978 complaints between July and December last year, compared to 1,060 in the same period in 2011.

Sesame upheld 15 per cent of its complaints in the second half of last year, down from a 24 per cent uphold rate in the second half of 2011.

A Sesame spokesman says the number of complaints represent a “tiny proportion” of the business written by members.

He says: “Whilst the overall number of cases has increased, the percentage being upheld has continued to reduce. Claims management companies are behind many of these complaints, with cases often referred to us regardless of their individual merits.

“Sesame takes its regulatory responsibilities very seriously. We fully investigate all complaints and we are satisfied the procedures we have in place ensures a consistent and fair approach to complaint handling and treating customers fairly.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Just like I said ~ these increases are being driven by the scumbag CMC’s and all intermediary firms of all sizes and types are seeing the same trend.

    I suggest it is encumbent upon firms receiving complaints that are frivolous, vexatious, without foundation or based simply on lies (i.e. fraudulent) to report them to the MoJ and to their MP. Bigger firms with the financial means to do so should also pursue them through the courts.

  2. No amount of “spin” will hide the simple fact that Sesame has huge liabilities from past advice. The accounts in 2011 showed a payout of £11.7m on complaints. If this 17% increase flows through then the payout in 2012 could be £13.7m. Even after PII and recoveries from members, this means that all Sesame members are paying 1.5% of turnover to pay for the mistakes of past members: that explains why Sesame prices are always going up.

  3. Did CMCs not exist before July 2012 then?

  4. @Anonymous | 16 Apr 2013 9:50 am

    True, but this isn’t paying for “Past Mistakes” in many cases, As the first comment states, many of the claims would be laughed out of court in the real world, but FOS still charges for many of them and Sesame often pays out on complaints, even if there is little merit in them, to save the risk of losing at FOS.

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