Advisers have criticised the Ministry of Justice (MoJ) for failing to protect firms from invalid mis-selling cases levelled by claims management companies (CMCs).
A number of IFAs say they are being unfairly targeted by CMCs for allegedly mis-selling products including mortgage endowments and health insurance policies. It follows a rise in the number of consumers using CMCs as a result of the mass mis-selling of payment protection insurance (PPI). But advisers say the MoJ, which regulates CMCs, is failing to protect them from "unwarranted" claims. Alan Lakey, partner at Highclere Financial Services, lodged a complaint with the MoJ in November 2011 against Devon-based claims manager EMC Advisory Services (EMCAS). EMCAS had made a number of...
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