UNREGULATED COMPENSATION PURSUERS

Early day motion 977, tabled 22 March 2005 by Paul Flynn (Labour). Signed by 38 members.

That this House welcomes the advice of the Financial Services Authority (FSA) on endowment mis-selling compensation pursuers that `some companies...make a charge which is usually a large percentage of any compensation the consumer receives. This service does not need to be regulated by the FSA'; is concerned that the FSA also warns that using one of these companies to complain on your behalf may not increase your chances of getting compensation; notes that these companies impose a charge of 20 per cent. to 41 per cent. of compensation received for advice which is often of little or no value; commends the splendid step-by-step advice available at no cost from Which? and the FSA; and believes that all financial complaint pursuing services should be regulated by the FSA.

Signatures by party: Labour 23, Liberal Democrat 10, Labour/Co-operative 3, Conservative 1, UUP 1.