During September and October 2009, a number of High Court and Court of Appeal Judgments have been lost by consumers, in weak claims brought by claims management companies (CMCs) and solicitors.
In a speech to financial services professionals, Lesley Titcomb, director of small firms at the FSA, said, “While we recognise there are good claims managers out there, as with any sector there are poor firms and we expect you to act with integrity and to make fair treatment of your customers central to what you do.”
The speech by Leslie Titcomb comes following high profile court cases that have been lost by claims management companies and solicitors in the High Court and Court of Appeal, such as: Phillip McGuffick v The Royal Bank of Scotland plc [2009], Southern Pacific Mortgage Limited v Jayne Elizabeth Heath [2009] and Southern Pacific Personal Loans Limited v Mr Michael Walker and Anr [2009].
Carl Wright, chief executive of the specialist financial claims company, Cartel Client Review Ltd said, “It is my view that in each of these cases, consumers have been badly let down by the claims management companies and solicitors acting on their behalf. It is arguable that these cases were so weak, that the claims should not have been brought before a High Court or Court of Appeal.”
Wright said further, “The FSA warning should go out to all UK consumers, to be very careful which claims Management Company they instruct to progress their financial claims.”
