Claims management companies come under political scrutiny
The Ministry of Justice has launched an investigation into claims management companies following complaints that they are blocking up the compensation system for mis-sold payment protection insurance (PPI).
According to the FT, the ministry has received complaints from the banking industry that claims management companies are submitting invalid compensation claims and “distracting” banks from paying valid claims.
Research by the newspaper found that Britain’s banks are now rejecting up to half of all compensation claims relating to mis-sold PPI after a substantial increase in submissions in the past few weeks.
The vast majority of these come via claims management companies who have been marketing
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