Claims management companies

What is the problem with claims management companies?

There are lots of companies out there who say they can get your debts written off for you, or get compensation for you by claiming that your credit agreements are unenforceable.

Warning
Be very careful. Most of these firms charge you large up-front fees for each agreement they agree to check, but with no guarantee that they will be successful in challenging your agreements. In most cases you will not get your money back if your claim is not successful.

Many credit agreements do meet the legal requirements under the Consumer Credit Act 1974 and are not easy to challenge as unenforceable.

We are a free, independent, confidential advice agency and we can give you advice about your credit agreements and whether they are likely to be unenforceable. We can tell you if there may be genuine grounds for a challenge.

Please think very carefully before paying money that you may not be able to afford to these companies. If you are worried about debts, this is unlikely to be your best option to deal with your creditors and in many cases it is likely to make your debt problems worse. We can help you look at all the options you have for dealing with your debts. Before signing up with one of these companies, phone us for advice.

Complaints

The Ministry of Justice is the regulator for claims management companies. They can take action against companies who break the rules.

• Authorised companies should not cold-call you or pressurise you into taking up their offer.
• They should give you written information on the costs before you agree a contract with them.
• There should be a cooling off period of 14 days to allow you to change your mind.
• The company should have a proper complaints policy.

If you have a complaint about a claims management company, this is the address to write to:

Claims Management Regulation Monitoring and Compliance Unit
57 - 60 High Street
Burton-upon-Trent
Staffordshire
DE14 1JS
Tel: 0845 450 6858 or 01283 233 309
Email: info@claimsregulation.gov.uk
www.claimsregulation.gov.uk

Remember: You can always contact us for advice about any difficulty you have in dealing with your debts.

Freephone 0808 808 4000 Website www.nationaldebtline.co.uk

© Copyright National Debtline March 2009