Business Secretary Vince Cable has said he was "not aware" of the problem of spurious payment protection insurance (PPI) claims made by claims management companies.
After a dinner organised by business networking organisation The Met Club on 4 October, Cable was asked by Andy Shuter, managing director of Frontline Solutions, what measures the government would put in place to combat bogus claims which are taking billions of pounds out of the banking sector each month.
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Cable replied: "I wasn’t aware there was a problem."
Cable was taking questions after his own speech at Rudding Park, Harrogate, praising the UK motor industry as a sector doing well at a time when the rest of the country was in recession.
‘Leading on the issue’
Shuter, who was in attendance as part of Frontline’s Dine with the Directors initiative with several high-profile clients from the asset and vehicle finance industry, said his table was "astonished" by the answer.
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By GlobalDataShuter added it was an "outrageous statement" for a person in Cable’s position in government to make.
Cable was also unavailable after questions from dinner attendees to follow up Shuter’s point.
Although requested by Motor Finance, no further comment regarding Cable’s statement was made available by the Department for Business, Innovation and Skills, which pointed to the Information Commissioner’s Office (ICO) as "leading on the issue".
Further information from the ICO concerning PPI claims and marketing can be found here: http://www.ico.gov.uk/for_the_public/topic_specific_guides/marketing/texts.aspx
richard.brown@vrlfinancialnews.com
