The lure of having debts “written off”, especially in the current economic crisis, is obviously enticing potential clients. But Loan Resolutions believes it is important that the claims management company follows the Ministry of Justice regulations, especially with respect to misleading advertising and advice.
The company believes that inappropriate claims management advice could have a detrimental effect on a consumer’s financial circumstance in the present, or in the future. However, if the client is not given the best advice or proper guidance, they may spend money on a claim which has a low chance of success, or miss out on a claim with a good chance of success. It should also be established that the client is able to maintain their current payments as if a case goes to litigation the process can take up to 12 months.
If a credit agreement was taken out before 6th April 2007 and was for £25,000 or less, this fulfils the initial criteria for unenforceability claims. However, further qualification of each credit agreement should be made, including those which have been paid off as there may be a potential claim for mis-sold payment protection insurance (PPI). Equipped with a complete overview of the client’s situation, a suitable recommendation can be made. This is especially significant where the client has multiple potential claims. It is imperative that consumers interested in pursuing a financial claim are given honest advice so they can make an informed decision to proceed.
In summary, claims management offered with good, honest advice is something that consumers have the right to receive. If this is combined with guiding principles such as treating customers fairly and sound financial and legal advice, consumers can be sure that they are receiving the best of both worlds.
