Call to ban PPI telemarketers

Most people want nuisance calls from claims management companies to be made illegal, a poll has found.

Financial claims firms 'largely ineffective'

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.

– David Fisher, Axa UK's claims expert

Read: Call to ban nuisance financial claims telemarketers

Consumers 'angered' by contact from claims firms

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

Read: Call to regulate 'nuisance' financial claims companies

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Call to regulate 'nuisance' financial claims companies

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.

Most people want nuisance calls from claims management companies (CMCs) to be made illegal, a new report has found.
Most people want nuisance calls from claims management companies (CMCs) to be made illegal, a new report has found. Credit: PA

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.