Ombudsman names CMC complaint-magnet charging £495 upfront

first_imgThe Legal Ombudsman today named a claims firm which has generated a flood of complaints in the last year.South Wales claims management company Claimline Direct Limited was subject to more than 100 complaints between February 2017 and January 2018, with the ombudsman able to resolve 69 of them.The legal complaints-handler exercised its power under the Legal Services Act to publish details of a report into the activities of the company, saying it was in the public interest to know what levels of service they can expect.Claimline Direct, a regulated CMC, deals with mis-sold payment protection insurance claims and was found to have consistently taken upfront fees of £495. But customers reported they were not kept up to date with the progress of claims, or their claims had not moved forward adequately, and refunds were not received when service levels fell short.The ombudsman confirmed Claimline Direct had not complied with its decisions directing a refund of upfront fees.The Office for Legal Complaints, which oversees the ombudsman service, said consumers using the company need to be aware it is likely their claim will not be progressed and they will lose their money.Chair of the OLC Board, Wanda Goldwag, said: ‘We have decided to publish because we are concerned that consumers may continue to purchase a service from Claimline Direct UK Limited that will not be delivered. We appreciate the impact these decisions may have on a service provider’s reputation, however in this instance we have decided that the need to protect consumers is greater.’The naming of companies which consistently attract the most complaints is a rare step. The last time was in August 2016, when another south Wales CMC, JAS Financial Advisory Services Ltd, was said to have been the subject of 92 complaints in six months.Claimline Direct has been approached for comment.last_img

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