Abta is urging MPs to ban cold calling, which the association says is one of the main tools used by unscrupulous claims management companies (CMCs) to encourage false or exaggerated holiday sickness claims.
The Financial Claims and Guidance Bill has its second reading in the House of Commons this morning, and Alan Wardle, Abta’s director of public affairs wants MPs to back an amendment that outlaws cold calling.
He 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 overwhelming 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.”
Abta, which has previously said the number of holiday sickness claims has increased by 565% since 2013, said cold calling was “one of the main tools” claims firms used to encourage fraudulent claims,
The association launched its Stop Sickness Scams campaign in June, and has backed Travel Weekly’s parallel Fight Fake Claims campaign.
In addition to MPs backing the cold calling ban, Abta also wants the Financial Conduct Authority to commit to consulting on the full recommendations of the 2016 Brady review of claims management regulation. In particular, the association is promoting 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%.
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