Rise of claims managers is firms' fault, says FOS

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Firms' failures to rectify mistakes has been a key factor in the rise of claims management companies (CMCs), Financial Ombudsman Service (FOS) chief executive Natalie Ceeney said.

Ceeney said the CMC sector had managed to gain a foothold "largely because of the mistakes made by financial businesses, and the fact that nobody moved quickly enough to put things right". Writing in the FOS's quarterly report - covering July to September this year - the chief ombudsman said the FOS had not found any evidence of a "compensation culture" in financial services. She said, if it had found evidence, the Ombudsman would expect to see a change in its 'uphold' rates, which refer to the proportion of decisions found in favour of the complainant. But Ceeney said those rates had...

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