Insurance: Payment Protection Insurance

Baroness Kramer Excerpts

Monday 5th March 2012 Lords Chamber

[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.

[Baroness Kramer]

My Lords, is the Minister aware of an issue raised by the Building Societies Association—that these claims companies are pursuing claims supposedly on behalf of individuals but against lenders where the product in question was never sold? By the time a lender and the ombudsman have spent money proving no sale, future borrowers are out of pocket because of the cost created. Can something be done to stem this growing practice?

[Lord McNally]

My noble friend is right to draw attention to another example of abuse. Where such abuses are brought to our attention, we remove companies from the list of those which are able to offer these services. Again, I emphasise that regulations and protection for the consumer are in place. We possibly need greater awareness among consumers of their rights, and I shall certainly take that back.