The Financial Claims and Guidance Bill has its second reading in the House of Commons on Monday 22 January and ABTA is calling on MPs to support an amendment to ban cold calling by claims management companies. Cold calling is one of the main tools used by unscrupulous Claims Management Companies (CMCs) to encourage exaggerated or false sickness claims; it has helped lead to a 565% increase in holiday sickness claims since 2013.

In addition, ABTA also wants the Financial Conduct Authority to commit to consulting on the full recommendations of the 2016 Brady review, especially relating to the need for greater transparency in the relationships between CMCs and solicitors who pursue claims through the courts. 

ABTA supports an obligation on CMCs to inform consumers of Alternative Dispute Resolution schemes, which allow consumers to retain 100% of any award made, unlike CMCs who typically retain 20-25%. 

Alan Wardle Director of Public Affairs said: “MPs have a great opportunity to put an end to unscrupulous claims management companies cold calling members of the public and encouraging them to submit exaggerated or false claims. Not only are these calls irritating, they can also encourage people to unwittingly break the law, risking a fine, criminal record or imprisonment. There is overwhelmingly public support for a cold calling ban and MPs should take this opportunity to listen to their constituents and ban this practice once and for all.”

¹Source - YouGov