Which? has hit back at the trade body for claims management firms after it said the consumer group should be “ashamed of itself” for writing a joint letter with the British Bankers’ Association to the Ministry of Justice calling for tighter regulation of CMCs.
The letter, sent to Justice Secretary Ken Clark earlier this week, says there is “significant evidence” of rule breaking by claims firms and calls for urgent action to improve the department’s regulation of them.
Yesterday, Claims Standards Council policy director Andrew Wigmore said it is “utterly disgraceful” for consumer groups to “side with” the BBA. The banking industry trade body took the FSA to court over its payment protection insurance redress scheme.
Which executive director Richard Lloyd says: “It was a big step forward to get banks and regulators around the table and agree a plan of action on what they can do to make it easier for people to claim back mis-sold PPI.
“In addition to this, we are now calling on the Government to take action that ensures third party complaint handlers are properly regulated and bad practice is stamped out, so that consumers get the compensation they are entitled to. If people representing CMCs do not understand that, it reinforces the need for urgent action by the Government.”