Business Secretary Vince Cable has said he was "not aware" of the problem of spurious payment protection insurance (PPI) claims made by claims management companies.

After a dinner organised by business networking organisation The Met Club on 4 October, Cable was asked by Andy Shuter, managing director of Frontline Solutions, what measures the government would put in place to combat bogus claims which are taking billions of pounds out of the banking sector each month.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Cable replied: "I wasn’t aware there was a problem."

Cable was taking questions after his own speech at Rudding Park, Harrogate, praising the UK motor industry as a sector doing well at a time when the rest of the country was in recession.

‘Leading on the issue’

Shuter, who was in attendance as part of Frontline’s Dine with the Directors initiative with several high-profile clients from the asset and vehicle finance industry, said his table was "astonished" by the answer.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Shuter added it was an "outrageous statement" for a person in Cable’s position in government to make.

Cable was also unavailable after questions from dinner attendees to follow up Shuter’s point.

Although requested by Motor Finance, no further comment regarding Cable’s statement was made available by the Department for Business, Innovation and Skills, which pointed to the Information Commissioner’s Office (ICO) as "leading on the issue".

Further information from the ICO concerning PPI claims and marketing can be found here: http://www.ico.gov.uk/for_the_public/topic_specific_guides/marketing/texts.aspx

richard.brown@vrlfinancialnews.com