The Advertising Standards Authority (ASA) has rejected a complaint that an advert for a claims management firm was misleading, after consumer bodies have warned against the firms.
The complainant said Claim For Refunds' ad, in which it said it charged no upfront fees and could settle claims involving payment protection insurance (PPI) mis-selling in three weeks, was misleading.
ASA adjudicators said Claim For Refunds charges consumers a £1 refundable deposit upfront, but said this is a "gesture of goodwill" and as it is refundable does not constitute an upfront fee.
The watchdog also said Claim For Refunds did not claim all cases were settled in three weeks, and said the firm has provided evidence to the Ministry of Justice in the past demonstrating it has solved at least some cases in this time period.
News of the ASA's decision came after the Financial Services Compensation Scheme (FSCS) warned consumers against using claims management firms to pursue compensation for mis-sold PPI.
The Financial Ombudsman Service (FOS) has also accused claims management firms of "exploiting" the PPI mis-selling scandal for profit, of being unnecessary to people pursuing claims, and of failing to properly represent their clients.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m