Ombudsman slams claims companies over PPI scandal
Claims management companies (CMCs) have “exploited” payment protection insurance (PPI) complaints, according to the Financial Ombudsman Service’s (FOS) legal director.
In its latest newsletter the FOS said that 45% of complaints received last year were from CMCs, reported IFAOnline.
Caroline Wayman, principal ombudsman and legal director at the FOS, said CMCs could seem “attractive and reassuring” but insisted consumers did not need to go through third parties to make claims.
“The ‘PPI problem’ stems from very large numbers of PPI policies being sold inappropriately by financial businesses - so CMCs didn’t create the problem. But they’ve certainly exploited it
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