Insurance: Payment Protection Insurance

Lord Kennedy of Southwark Excerpts

Monday 5th March 2012 Lords Chamber

Asked By

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what action they are taking to ensure consumers are getting good value for money from companies that are marketing services helping people make payment protection insurance mis-selling claims.

[The Minister of State, Ministry of Justice (Lord McNally)]

My Lords, the Government require claims management companies to follow conduct rules focusing on protecting the consumer. The Ministry of Justice’s Claims Management Regulation Unit will take action against companies which fail to comply.

[Lord Kennedy of Southwark]

Does the noble Lord agree that the mis-selling of payment protection insurance was a scandal? Does he agree that making a claim is relatively straightforward, that you do not need to use a claims management company, and that losing 30 per cent of your compensation in fees and charges is not very good value for money? Would he agree to meet me and consumers’ representatives to discuss how consumers can keep more of their money?

[Lord McNally]

My Lords, I would be very happy to have such a meeting, and I congratulate the noble Lord on his campaign in this area. It is an area where consumers have not been best served and where they are not aware that there are many simpler ways of reclaiming this money than paying exorbitant fees to claims management companies. I hope that as a department we are on the case but I would gladly meet the noble Lord and colleagues to discuss it further.