Claims Management Firms still clinging on

Hundreds of companies tried to exploit a loophole in the Consumer Credit Act 1974, using this to suggest that many credit agreements were unenforceable. The sad reality is that most of these claims were wishful thinking.

Keith Chorlton owns loan-broking company, Yes Loans, which continues to generate many complaints from people who have paid Yes Loans a fee to find them a loan, only to find that the loan offered was too small or too expensive. Problems arose when they tried to get the refund they are legally entitled to.

Mr Chorlton's wife, Joy, runs Beneficial Claims, a company also blighted by complaints.

One of Beneficial's unfortunate clients was Mary from Northern Ireland. Mary paid Beneficial Claims £245 to look at her agreement with Egg. After being told by Beneficial Claims that they were 'very confident of a positive outcome', she paid them a further £800 in installments. On the advice of Beneficial Claims she also stopped her card payments, ending up with arrears of £500.

After dealing with Beneficial Claims for a year, they told her that they couldn't represent her as it was under Northern Ireland law.

Having been 'to hell and back', Mary has entered into an IVA, as an alternative to Bankruptcy.

Mr Chorlton claimed to be "touched" by Mary's plight and has ensured she's finally got her refund.