WIREDGOV

Citizens Advice has said fines for claim firms are a step towards protecting consumers but a ban on cold calling by claims management companies would do more to stamp out unsolicited calls.  

The Ministry of Justice announced yesterday that the Claims Management Regulation (CMR) Unit will be able to issue fines to firms using information from cold calling or breaking the rules.  

Citizens Advice Chief Executive Gillian Guy said:

“Some claims management companies have proved to be nothing more than a menacing intermediary. They are taking thousands of pounds worth of people’s PPI pay-out for what is essentially basic administration. In some cases people aren’t getting the compensation they were promised and are finding that claims services are not up to scratch.  Companies behaving this way deserve to be hit with a large fine, as the Government has outlined today.

“Citizens Advice has been pressing for action against cold callers for some time now.  Our research finds over 30 million people have been contacted out of the blue about PPI and half have received unexpected calls or texts more than 10 times in the last 12 months. The Government could further protect consumers by banning claims firms from using cold calling altogether.  Consumers would then know a call out of the blue from a claims company is a firm not to be trusted.”

Research from Citizens Advice finds people’s work, family time and even household chores are being put on hold to answer calls about re-claiming for PPI.

• 1 in 4 (27%)  received their most recent call during a during a family meal time;
• Around 1 in 7 (14%) received the call while at work including during meetings and presentations;
• Around 1 in 8 (13%) of people were contacted during TV and film viewing;
• 1 in 25 (4%) were carrying out their domestic duties, like cleaning, cooking and gardening, when they last received a PPI claims call.

Telephone calls (91%), automated messages to landlines (39%) and texts to mobiles (35%) are the most common ways in which people are contacted about PPI claims.  

Citizens Advice

Notes to editors

1. The research was conducted on Capibus, Ipsos MORI’s face to face omnibus, between 21st June and 15th July 2013. Questions were asked of 5,682 adults aged 18+ across Great Britain.  The survey data were weighted by age, gender, region, social grade, household tenure, working status and ethnicity to be nationally representative of adults 18+ in Great Britain.
2. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
3. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
4. To find your local bureau in England and Wales, visit www.citizensadvice.org.uk. You can also get advice online at www.adviceguide.org.uk 
5. You can get consumer advice from the Citizens Advice consumer service on 08454 04 05 06 or 08454 04 05 05 for Welsh language speakers
6. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.6 million problems from April 2012 to March 2013. For full 2012/2013 service statistics see our quarterly publication Advice trends 
7. Citizens Advice service staff are supported by more than 22,000 trained volunteers, working at over 3,000 service outlets across England and Wales.