Commenting on the publication of the Annual Review of the Financial Ombudsman Service (FOS) for 2015/16, which was published today (25th May), Simon Evans of the Alliance of Claims Companies said:

“It is disappointing that once again we see the mainstream media concentrating on the role of Claims Management Companies in the continuing mis-selling saga that was brought about by the behaviour of banks and other financial institutions.

“We have in recent days seen many millions more in provisions being set- aside by banks to compensate consumers for mis-sold payment protection insurance (PPI), and interestingly, the FOS report tells us that an average of nearly 4,000 complaints a week were lodged with the Ombudsman Service regarding PPI during the year ending 31st March 2016. And let’s not forget that in the second half of 2015, 69% of those complaints were upheld in favour of the consumer.

“Claims Management Companies, including those who are our members in the ACC, will continue to challenge the banks and financial institutions over these continuing bad practices, and the role they play in helping to reclaim millions of pounds for consumers up and down the country, consumers who may well not be financially literate enough to claim for themselves, is a vital element in holding these institutions to account.

“As I said when we saw similar rhetoric upon the publication of the recent PAC report, and I make no apologies for repeating it here, the real scandal is not that CMCs are helping consumers to reclaim money that is rightfully theirs, and charging a market led fee for doing so, but it is the scale of the mis-selling, and the continued resistance of banks and others to properly compensate consumers in a timely fashion. Claims management companies have an important role to play in bringing financial institutions to account for their malpractice, and will continue to do so.”