Charter UK has questioned the Financial Ombudsman Service review that has rejected calls for claims management companies to pay a fee for submitting bogus cases.
The review also intends to increase the number of submitted cases before financial services has to pay a fee from three to 25 a year.
Paul Clark, chief executive of Charter UK, said although the announcement represented a small victory for financial services firms, the claims managem,ent companies should not fall into a grey area.
He said: "The FSA has made it abundantly clear to the banks that they need to revise their way of dealing with complaints. Industry figures suggest that up to 25 per cent of the claims banks are receiving from claims management companies are from claimants who never had a PPI policy in the first place.
"The FOS itself has acknowledged 5,600 complaints out of its 157,716 PPI cases were on behalf of consumers without even having a PPI policy in place."
The FOS' official statement in the review said claims management companies should not be penalised by erroneous claims, rather issues would be best addressed by better regulation of the sector and prevention of mass complaints at source.
Clark said: "One has to ask why have the review in the first place if nothing is going to be done with it? And more importantly whose job is it to ensure greater regulation?
"This move by the FOS is clearly creating an uneven playing field. It is still far off the mark to control claims management companies which now represent one of least regulated sectors of the financial services industry."
