Finance firms face cold calling ban

banks

Financial services companies could end up paying an even heavier penalty for mis-selling PPI policies, after Citizens Advice demanded they should be banned from running all cold telemarketing campaigns.
Banks have already shelled out millions of pounds in compensation, but ironically it is the nuisance calls from claims firms that have landed them in more trouble.
The demand for a ban follows a Citizens Advice survey, which showed two-thirds of adults – equivalent to 30 million people – have received unwanted calls about mis-sold PPI policies.
The move is the latest attack on the UK telemarketing industry, which has found itself under siege in recent months. While the clampdown is designed to weed out rogue firms, many legitimate businesses are also being caught up in the offensive.
This is evidenced by the fact that 98% of those surveyed by Citizens Advice did not feel they had given their permission to be contacted; not a requirement under existing legislation.
Timings of calls are also causing concern. One in four of those surveyed received their most recent call during a family meal time; 1 in 7 while at work; 1 in 8 watching a TV or film; and 1 in 25 were carrying out domestic duties, like cleaning, cooking and gardening. However, it could be argued that telemarketing firms are simply trying to catch people when they are available.
The survey of 5,682 UK adults found that telephone calls (91%), automated messages to landlines (39%) and texts to mobiles (35%) are the most common ways in which people are contacted about PPI claims. Citizens Advice found 56% of complaints about PPI claims management stemmed from cold calls.
Citizens Advice chief executive Gillian Guy said: “It’s completely unacceptable that precious family time, important work meetings and rare opportunities to relax are being ruined by PPI cold calls. Nuisance calls aren’t just irritating, they’re often a sign that the service on offer isn’t very good or is actually a scam. Over a third of the complaints Citizens Advice handles about financial services stem from a cold call.
“There is a particular problem with claims management companies. People are finding that sometimes the promises made over an unexpected phone call aren’t delivered. This means people who have been mis-sold PPI lose out twice: first at the hands of the bank and secondly from the claims firms because they don’t get the full compensation they deserve.
“I want financial services firms to be banned from cold calling. That will help consumers identify good firms from the bad. Then if you get a cold call you’ll know it is either a bogus firm or company not to be trusted.”

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2 Comments on "Finance firms face cold calling ban"

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  2. RT @DM_editor: Nuisance calls from PPI claims firms fuel demand for cold #telemarketing ban http://t.co/W6VSRqBCxG #datamarketing #directma…

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