Fopllowing the Lloyds announcemnt yesterday that it has set aside £3.2bn for PPI claims, speakers Peter Griffiths, chief executive of Principality Building Society and Robin Smith, chairman of Leeds Building Society both argued that it was unacceptable for claim management firms to remain unregulated.
Griffiths said that over 80% of claims were coming through from claims management firms and that those who are managing the periphery are “getting away with murder.”
Smith said that the firms are a “menace for business” and if he were in charge, he would get rid of them.
“The impact of the firms is an unpleasant addition to the cost of running a business and a waste of management time.”
Robin Churchouse, finance director of Yorkshire Building Society said that more lobbying needs to be done to ensure that firms like claim management companies face the same level of regulation as the mortgage market.
“There is a lack of regulation on some firms that are on the fringe and this is a real danger to the industry. We should be lobbying for other firms to be as regulated as we are.”
