Labour demands stricter claims ads

By Parliamentary correspondent,, Thursday, 26 July 2012 10:55AM

Labour has called for tougher regulation of ads by claims management companies that help people who were mis-sold financial products secure compensation.

Ed Miliband: demands tougher rules

Ed Miliband: demands tougher rules

Critics accuse the companies of giving a false impression that people boost their chances of winning compensation by using them, then taking commission at 20-30 per cent of the payouts.

Ed Miliband demanded tougher rules on ads for payment protection insurance against people losing their jobs, for which the compensation bill could total more than £9 billion. Claims companies are said to have already made £1 billion from this. Miliband said this scandal could be repeated because an estimated 28,000 small businessmen were mis-sold insurance.

Ministers are believed to be pressing for a simple compensation scheme for small companies affected by mis-selling and may call on claims companies to tone down their ads.

This article was first published on


You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs