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Claims management firms face tougher rules

28 August 2012 Last updated at 16:38 BST

People who are let down by claims management companies will be able to go to the Legal Ombudsman.

The Ombudsman has the legal power to award compensation to consumers if appropriate.

Claims firms have been blamed for stoking up thousands of bogus claims against banks for the mis-selling of payment protection insurance.

Head of policy and communications at the Legal Ombudsman Sam Berrisford told BBC News that the service will be introduced in 2013.