- 3 updates
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.
An AXA report into the way financial claims contact people is calling for a change in the law to limit the number of calls and texts they can make.
The research says the number of calls a firm must make before a penalty is enforced should be in the hundreds rather than thousands as it is currently.
A poll of 2,000 people found:
- 63% feel "angry" about being contacted by CMCs
- 63% see the communications as an "invasion of their privacy"
- 45% worry about how CMCs had access to their contact details
- 44% said they were pro-actively trying to stop unwanted contact
- 60% said a Government clampdown last year has no effect on CMC calls
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.