Legal firms which promise to represent consumers trying to recover charges levied by banks for indiscretions on their current accounts on a no-win, no-fee basis are to be investigated.
Over 30 new firms have arisen since consumer campaigns began to encourage customers to claim back fees from their banks, the BBC reports.
It adds that the newly formed Ministry of Justice is to investigate the sales tactics of such firms, including cold-calling.
The controversy over the firms partly centres on the fact that customers do not need to sue legal firms to make claims against their banks, so any money they pay in fees to such firms is unnecessarily lost.
Earlier this week it appeared the tide had turned against consumers when Lloyds TSB successfully defended a case over charges at Birmingham County Court.
However, Lisa Joseph, a decorator from West Sussex won a case at Worthing County Court when her bank, Barclays, failed to turn up, the Argus reports.
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