The Financial Claims and Guidance Bill, which will be debated by MPs in the House of Commons again today (January 22), proposes the creation of a single financial guidance body that would consider the impact of cold-calling on consumers.

Abta said it believed cold-calling to be “one of the main tools” used by Claims Management Companies (CMCs) to “encourage exaggerated or false sickness claims” and had helped to fuel a 565% increase in holiday sickness claims since 2013.

The association is also calling on the Financial Conduct Authority to commit to consulting on the full recommendations of the 2016 Brady review – an independent review of claims management regulation – in relation “to the need for greater transparency” between CMCs and solicitors who pursue claims.

Abta added that it was in favour of an obligation on CMCs to inform consumers of Alternative Dispute Resolution schemes, which allow consumers to retain 100% of any award made, unlike CMCs, which typically retain around 20-25% of settlements.

Alan Wardle, director of public affairs 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 overwhelmingly 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.”