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.
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