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You can find the current article at its original source at http://www.guardian.co.uk/money/2012/oct/17/ppi-claims-management-firms-change-advertising
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| Version 3 | Version 4 |
|---|---|
| PPI claims management firms ordered to change advertising | PPI claims management firms ordered to change advertising |
| (2 months later) | |
| Two claims management firms have been told to change their advertising after overstating how difficult it would be for consumers to reclaim payment protection insurance (PPI) premiums from banks and building societies. | Two claims management firms have been told to change their advertising after overstating how difficult it would be for consumers to reclaim payment protection insurance (PPI) premiums from banks and building societies. |
| The Advertising Standards Authority (ASA) ordered the companies, Gladstone Brookes and Consumer Finance Claims, to alter adverts which suggested reclaiming PPI was a lengthy process and that consumers had more chance of success if they used a claims management company. | The Advertising Standards Authority (ASA) ordered the companies, Gladstone Brookes and Consumer Finance Claims, to alter adverts which suggested reclaiming PPI was a lengthy process and that consumers had more chance of success if they used a claims management company. |
| Claims management companies offer to take cases against lenders on consumers' behalf, usually on a no-win no-fee basis. They often take as much as 25% of the eventual pay out, and lenders and regulators have urged people to make claims directly rather than through these firms. | Claims management companies offer to take cases against lenders on consumers' behalf, usually on a no-win no-fee basis. They often take as much as 25% of the eventual pay out, and lenders and regulators have urged people to make claims directly rather than through these firms. |
| Consumer Finance Claims told visitors to its website it could help them reclaim mis-sold PPI plus interest and stated: "Unlike many other inexperienced companies who have sprung up in 2010 Consumer Finance Claims has being [sic] operating since 2008! We are well versed in dealing with lenders and know which pitfalls to look for which make your case stronger!" | Consumer Finance Claims told visitors to its website it could help them reclaim mis-sold PPI plus interest and stated: "Unlike many other inexperienced companies who have sprung up in 2010 Consumer Finance Claims has being [sic] operating since 2008! We are well versed in dealing with lenders and know which pitfalls to look for which make your case stronger!" |
| The ASA said the claim "we … know which pitfalls to look for which make your case stronger!" would be understood to mean that using the advertisers' services would be more likely to bring about a better outcome for a consumer than if they took their case directly to the lender. | The ASA said the claim "we … know which pitfalls to look for which make your case stronger!" would be understood to mean that using the advertisers' services would be more likely to bring about a better outcome for a consumer than if they took their case directly to the lender. |
| But the Financial Ombudsman Service and the Ministry of Justice, which regulates claims management firms, and the Financial Services Authority have jointly stated consumers have no more chance of getting their money back if they use a firm (pdf). | But the Financial Ombudsman Service and the Ministry of Justice, which regulates claims management firms, and the Financial Services Authority have jointly stated consumers have no more chance of getting their money back if they use a firm (pdf). |
| Referring to this statement, the ASA said Consumer Finance Claims should not make the claim in its adverts again. | Referring to this statement, the ASA said Consumer Finance Claims should not make the claim in its adverts again. |
| A separate ruling against Gladstone Brookes was based on its assertion that reclaiming PPI was time consuming. Three people complained about a TV advert which showed a ticking clock and stated: "For years PPI has been mis-sold to millions with their bank loans – Fact. Reclaiming PPI takes up your time – Fact". | A separate ruling against Gladstone Brookes was based on its assertion that reclaiming PPI was time consuming. Three people complained about a TV advert which showed a ticking clock and stated: "For years PPI has been mis-sold to millions with their bank loans – Fact. Reclaiming PPI takes up your time – Fact". |
| The company, which in 2011 obtained £108m in PPI compensation from the banks on behalf of its customer, denied complaints it had exaggerated the time it took to make a claim, pointing out it had not quantified how much time it would take. | The company, which in 2011 obtained £108m in PPI compensation from the banks on behalf of its customer, denied complaints it had exaggerated the time it took to make a claim, pointing out it had not quantified how much time it would take. |
| The ASA acknowledged this, but said highlighting the time consuming nature of making a claim as a particular feature and potential drawback could lead some viewers to infer it was a time consuming and perhaps even difficult process. | The ASA acknowledged this, but said highlighting the time consuming nature of making a claim as a particular feature and potential drawback could lead some viewers to infer it was a time consuming and perhaps even difficult process. |
| It concluded the advert was misleading and should not be broadcast again in its current form. | It concluded the advert was misleading and should not be broadcast again in its current form. |
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