Citizens Advice wants ban on financial services cold calling

Published on

coldcall

Financial services providers such as claims management companies, pension unlocking services and credit brokers should be banned from cold calling according to Citizens Advice.

Its research found 35% of complaints about these financial services were from a cold call. People paid up front fees for loans that never materialised, had their bank details passed onto other companies and firms failed to abide by cancellation rules.

A new Ofcom study has revealed that 82% of adults received a nuisance call during a four week period. It found that where the person was able to identify what the call was about, 22% were for PPI claims, and 10% of recorded sales calls were about pension rebates.

Citizens Advice found a direct correlation between shoddy financial services, cold calling and lead generation – where people’s details are passed on without their apparent permission.

The research is a detailed analysis of a sample of complaints (1,845) about financial services to the Citizens Advice consumer service between January and February 2013 which found:

  • 35% of cases had evidence of cold calling, out of the blue texts, letters and spam emails
  • 97% of cases about pension unlocking services and 56% of PPI claims management stemmed from cold calls
  • 13% said their personal and/or bank details had been passed from company to company
  • half involved an upfront fee
  • 30% were scams many of which were from cold calls, had upfront fees or persistently tried to persuade people to part with their cash.

The Citizens Advice consumer service dealt with over 30,000 complaints about cold calling for a range of products and services between April 2012 and March 2013. Half related to professional and financial services including PPI and offers of loans.

Citizens Advice chief executive Gillian Guy said: “People are being hounded in their homes by unscrupulous financial firms. Without a ban on cold calling for financial services people are at risk of losing some of their pension to scams or paying upfront fees for services that don’t deliver.

“A ban on cold calling will make it clear that if you are still contacted out of the blue then it is a scam or a service not to be trusted.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

The Exeter reports rise in HealthWise app use as remote GP demand leads growth

The Exeter said usage of its HealthWise app increased across all core services in...

Landlords continue shift to company structures as incorporation set to rise in 2026

The number of companies established to hold buy-to-let portfolios is forecast to rise by...

Rosemount rolls out proprietary KYC tool for advisers

Rosemount Financial Solutions has launched its own Know Your Customer tool for member advisers,...

Landlords’ awareness of Renters’ Rights Act rises as concern grows over possession delays

Three quarters of landlords are now aware of the Renters’ Rights Act, with concern...

ASN Bank selects Ohpen to overhaul mortgage technology platform

ASN Bank has appointed Ohpen as its strategic technology partner for mortgages as it...

Latest publication

Other news

The Exeter reports rise in HealthWise app use as remote GP demand leads growth

The Exeter said usage of its HealthWise app increased across all core services in...

Landlords continue shift to company structures as incorporation set to rise in 2026

The number of companies established to hold buy-to-let portfolios is forecast to rise by...

Rosemount rolls out proprietary KYC tool for advisers

Rosemount Financial Solutions has launched its own Know Your Customer tool for member advisers,...