A Manchester business has become the latest claims management company to be sanctioned by advertising watchdogs over misleading ads about compensation.

Lloyds Bank complained to the Advertising Standards Authority about a sponsored tweet from a regional press publication’s Twitter account and a website for claims management company Stanton Fisher, seen on 1 February 2016.

Both ads related to mis-sold payment protection insurance.

The bank challenged whether the claims ‘average compensation package: £3,320’ and ‘£3,320 average client compensation package’ – were misleading and could be substantiated.

Stanton Fisher provided detailed evidence in support of the claims. But the watchdog ruled that the average figure quoted in the ads was calculated from the total of the amounts lenders had offered each client in settlement through the CMC — whereas the ASA understood the amount received by each client was less because fees (including VAT) and taxes were deducted.

‘We considered that the fact that compensation amounts offered by lenders were subject to Stanton Fisher’s fees at 33%, inclusive of VAT, and other taxes, was material information that consumers needed in order to make an informed decision as to whether or not to pursue PPI claims through Stanton Fisher,’ said the watchdog.

‘However, it was not clear from the ads that compensation amounts were subject to such fees.’

The watchdog ruled the ads were misleading and upheld the complaint. Stanton has been told that the ads must not appear again and that similar future claims must not ’state or imply that the figures stated related to amount that their clients eventually received, if that was not the case’.