Two-thirds of consumers want communications from Claims Management Companies banned

A report by AXA has revealed that two-thirds of consumers want communications from Claims Management Companies (CMCs) banned, with one in five respondents contacted by a CMC in the past 24 hours.

Respondents to the survey called for tighter regulation by governing bodies, with 64% calling for CMC communications to be made illegal.

More than 2,000 consumers were questioned: 63% reported feeling “angry” on receiving frequent communications from CMCs, with the same number calling it an “invasion of their privacy”.

Fourty-four percent had proactively tried to stop unwanted contact, but only 6% were successful in doing so.

Fifty-eight percent said they have seen no change in the number of communications they receive despite regulatory changes.

AXA claims manager David Fisher said: “It would appear that CMCs are taking advantage of a consumer lack of confidence in the system when claiming compensation for mis-selling. However, this research shows that not only do the vast majority react negatively to contact with CMCs, but of the 12% that pursued a claim, only half were successful, suggesting that the CMC route is not particularly effective. CMCs are on the lookout for new claims pools, so as whiplash claims gradually fall as a result of the ban on referral fees, and PPI mis-selling claims eventually subside, we can expect them to move into fresh compensation pastures.

“It is time for the Ministry of Justice’s Claims Management Regulation Unit to address these spamming tactics so that the CMCs’ endless search for growth does not continue to significantly affect consumers and unnecessarily invade the privacy of thousands of people every day.”

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