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Strength for consumers against claims management companies

28 August 2012

The Government is proposing to give powers to the Legal Ombudsman to award payouts of £30,000 to consumers who have been mistreated by claims management companies.

Gillian Guy, Chief Executive at national charity Citizens Advice said:

“At last a chance for consumers to get some money back from predatory claims management companies. Some people could have lost out on thousands of pounds because claims management companies were not clear on the size of the commission they would take or they settled for less money than the client wanted.

“It is only right they should be compensated for this loss and complaining to the Legal Ombudsman service is a sensible way to do this.”

Citizens Advice dealt with over 800 issues around PPI mis-selling and claims management companies between April and June 2012.

You can claim for PPI mis-selling without using a claims management company. Citizens Advice has template letters and guidance on how to do this at or you can go to local Citizens Advice Bureaux.

Citizens Advice also wants:

  • to see claims management companies who operate without a licence or break the licensing rules to be to be subjected to far tougher enforcement action and penalties;
  • regulator clamp down on the claims management companies spamming people by text messages and phone calls looking for potential business.

Citizens Advice currently running an online survey to find out more about people’s experiences of claims management companies. You can fill in the survey here:

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 You can also get advice online at
  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.