Excessive (potentially unfair) bank charges and the mis-selling of payment protection insurance (PPI) are two drivers of an increase in the number of complaints against financial services firms.
Consumers of financial products and services have every right to complain if they feel they have been mis-sold or treated unfairly.
There is a robust and clear process in place for making these complaints. Start with a (preferably written) complaint to the firm that sold you the policy. If you are not satisfied with their response, refer your complaint to the Financial Ombudsman Service (FOS).
It's that simple.
To make life even easier, a quick search on the Internet will reveal template complaint letters on different topics - bank charges, payment protection insurance and endowments, to name but a few. If you use these, ensure that you personalise them and provide as much factual background data as possible.
What you do not need to do, in the vast majority of cases, is engage with a claims management firm to handle your complaint.
New research by the consumer organisation Which? found that a number of claims management firms broke rules set by the Ministry of Justice (MOJ) by claiming you would be better off using their company rather than claiming independently, even though an independent claim costs nothing. 10 out of the 38 firms surveyed implied this.
A further 16 firms stated they had successfully claimed back money in 90% or more of cases without properly qualifying this. Five companies were unable to say how they were regulated.
Possibly the most shocking figure in the research from Which? was that claims management companies typically charge a commission of 25% plus VAT if a claim is successful. Many also charge upfront fees.
Think very carefully before you engage with a claims management firm, particularly if they make unsubstantiated claims about their success rates, imply you will get a better deal by using their services or charge excessive commission rates and upfront charges.
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