The Government is being urged to hand over the policing of financial services telemarketing to the Financial Conduct Authority after new figures reveal that the ban on cold-calling from claims management firms – introduced on September 8 – has had little effect so far.
An analysis carried out by Truecall – the company behind the call-blocking service – shows that in the two years before the ban was introduced, between 30% and 40% of calls received by Truecall devices were from so-called nuisance callers.
In the weeks since the ban the proportion of nuisance calls held steady at between 36% and 38% of calls. Claims management companies that break the rules can be fined up to £500,000.
Around one in five cold calls come from foreign numbers, according to Truecall, meaning that they fall out of the UK’s regulatory powers. Meanwhile, it has been claimed that predominance of so-called spoofing – which allows rogue firms to hide their real number – is another major issue.
The move reinforces fears that the ban on pensions cold calling – due to be implemented within weeks – will also be ineffective.
David Hickson of the Fair Telecoms Campaign said: “The only way to apply an effective ban on cold calling for claims management or pension and other investments is for this to be done by the Financial Conduct Authority which has superior powers to the Information Commissioner’s Office and proper responsibility which would stop this mess.”
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