WIREDGOV

The Government is proposing to give powers to the Legal Ombudsman to award payouts of £30,000 to consumers who have been mistreated by claims management companies.

Gillian Guy, Chief Executive at national charity Citizens Advice said: “At last a chance for consumers to get some money back from predatory claims management companies. Some people could have lost out on thousands of pounds because claims management companies were not clear on the size of the commission they would take or they settled for less money than the client wanted.

“It is only right they should be compensated for this loss and complaining to the Legal Ombudsman service is a sensible way to do this.”

Citizens Advice dealt with over 800 issues around PPI mis-selling and claims management companies between April and June 2012.

You can claim for PPI mis-selling without using a claims management company. Citizens Advice has template letters and guidance on how to do this at www.adviceguide.org.uk or you can go to local Citizens Advice Bureaux.

Citizens Advice also wants:

• to see claims management companies who operate without a licence or break the licensing rules to be to be subjected to far tougher enforcement action and penalties;
• regulator clamp down on the claims management companies spamming people by text messages and phone calls looking for potential business.

Citizens Advice currently running an online survey to find out more about people’s experiences of claims management companies. You can fill in the survey here:

• www.surveymonkey.com

Notes to editors

1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, 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 information in England and Wales see citizensadvice.org.uk
2. 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. For online advice and information see adviceguide.org.uk
3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 6.9 million problems from April 2011 to March 2012. For full 2011/2012 service statistics see: citizensadvice.org.uk/press_statistics
4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.