Ban on claims firms cold calling will drive out nuisance calls

Citizens Advice wants claims management companies to be banned from cold calling and charging up front fees as the claims management regulator announces a 30% reduction in injury claims firms.

Citizens Advice Chief Executive Gillian Guy said:

"We hope the closure of over 200 claims firms in the last year and warnings to 285 others will go some way to cleaning up the claims management market.  The Government should ban claims firms from cold calling, that way protecting people from the nuisance of unwanted calls and unscrupulous firms who don't provide all of the necessary information at the start.  

“The claims management regulator has yet to tackle the problem of up front fees. We see people who have paid a fee only to find that they don't have a claim to make or the firm doesn't deliver on what was promised.  

“With claims firms moving from one consumer crisis to another, as they have done with accident claims then onto mis-sold PPI, it is only a matter of time before they jump on the bandwagon of another consumer plight, so tougher action is needed to sort out the market.

“You don't have to use a claims company to make a claim for mis-sold PPI, you can do it for free and Citizens Advice has template letters that can help you; they are available online at www.adviceguide.org.uk.”

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website .

  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.

  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk . You can also get advice online at adviceguide.org.uk

  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers

  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends

  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.