BBA warns consumers over claims handlers

19/10/2009

Bank customers could be putting their money at risk by paying consumer claims handlers who mis-manage their complaints.

The Independent study for the British Bankers Association based on a 'mystery shop' of claims management companies'>claims management companies, says some companies are targeting vulnerable consumers in financial difficulty by promising compensation but don't highlight key risks, such as possible damage to credit ratings from CCJ's.

It claims too many companies still lure customers in with the promise of striking out their debts without any evidence they can do so.

The study also found that many clients are not being told about alternative mechanisms to resolve their claims such as the Financial Ombudsmen Service and clients should always contact their banks first with a complaint.

Debt management company EuroDebt is very vocal in alerting customers to propositions that may cause them serious detriment.

Company Director Kevin Still says many households will be facing this challenge in 2010 as disposable income continues to be squeezed. He says facing your debts is much better than being in denial and that there are proven ways to manage debt and get back in control.

• Share
• 
• 
• Store
• 
• Follow
•