The justice minister has said that people should ‘never’ use claims management companies in PPI cases.

Lord Tom McNally, Lib Dem, was replying in the Lords to a question from Labour peer Lord Roy Kennedy.

He asked: “The mis-selling of payment protection insurance was an absolute scandal but the activities of some claims management companies is also a scandal with their unwanted text messages and phone calls.

“There is a serious problem with the industry, so what is the Government going to do about it?”

McNally replied: “The general advice is that customers should never use these firms. It is simple to make claims yourself and there is a template of a claim letter on websites. However, claims firms have at least enabled financially less confident consumers to seek redress.”

He added that a working group with members including the Advertising Trading Standards and Telephone Preference Service, is looking at how effective action can be taken to stop nuisance calls.

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