Citizens Advice has lamented the new conduct rules for claims management companies, claiming they are “extremely disappointing” and “let consumers down”.
Gillian Guy, chief executive at Citizens Advice, said: “Too many people have been ripped off by these predatory firms who use underhand tactics to make money from people who often don’t have a claim to make.
“The new Conduct Rules are extremely disappointing. The regulator has let consumers down by not banning upfront fees, barring firms from cold calling or making sure fees are in proportion to the compensation gained.
“While it is good that the rules mean contracts will need to be signed in writing it does not go anywhere near tackling the real problems people are facing.
“We’re keen to remind people that you don’t have to use a claims management company to make a claim for mis-sold PPI – you can do it for free by going straight to your bank.”