Claims management companies have been described as "largely innefective" in a new report by Axa that accuses the firms of "taking advantage of a consumer lack of confidence in the system" when claiming compensation for mis-selling.
This research shows that not only do the vast majority [of consumers] react negatively to contact with CMCs, but of the 12% that pursued a claim, only half were successful, suggesting that the CMC route is not particularly effective.
It is time for the Ministry of Justice's claims management regulation unit to address these spamming tactics so that the CMCs' endless search for growth does not continue to significantly impact consumers and unnecessarily invade the privacy of thousands of people every day.
Firms that offer to seek compensation for personal injury or financial products, such as mis-sold payment protection insurance, should be banned from bombarding people with calls and messages, according to a new report.
More than 80% of those questioned by Axa insurance company said they wanted to see telemarketing companies that contact people on behalf of Claims Management Companies to be more closely regulated and face fines for abusing distribution laws.
Almost 64% said the firms should be banned from bombarding people with messages.