UNREGULATED COMPENSATION PURSUERS

Early day motion 430, tabled 28 June 2005 by Paul Flynn (Labour). Signed by 40 members.

That this House deplores the misleading claims by the 76 companies offering advice to those seeking compensation for mis-sold endowment mortgages; welcomes the advice of the Financial Services Authority (FSA) 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. 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 10 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 calls for a regulated activities order under the Financial Services and Markets Act to make complaint handling for financial service products a regulated activity.

Signatures by party: Labour 22, Liberal Democrat 9, DUP 4, Conservative 3, Plaid Cymru 1, Social Democratic and Labour Party 1.