UK regulators examine claims-management market
The review will examine misleading ads, unfair exit fees and whether consumers are receiving fair value, with 76 law firms already under scrutiny.
- On Wednesday, the Financial Conduct Authority and the Solicitors Regulation Authority announced a joint review of the claims-management market, examining misleading advertising, aggressive marketing, and unfair exit fees affecting consumers.
- Regulators are frustrated that firms charge at least 30% in fees to pursue motor finance redress, despite an estimated £9.1 billion pot being accessible to the public for free.
- To date, the FCA has prompted the removal or amendment of 800 misleading adverts, while more than 28,000 consumers have exited contracts free of charge and three claims management companies reduced unreasonable fees.
- Aileen Armstrong, SRA executive director, strategy, innovation and external affairs, said: "When they work well, claims management services can benefit consumers. But we are concerned about behaviours that are not looking after consumers."
- Parties failing to cooperate fully will face "robust action," the FCA warned, with further information on the review expected by mid-May as scrutiny expands to housing disrepair and other claims.
18 Articles
18 Articles
Car finance compensation scheme prompts major review as millions of drivers prepare for £829 payout
The UK's financial regulator has unveiled major changes to claims management practices following the confirmation of a compensation scheme for victims of the car finance scandal.The Financial Conduct Authority (FCA) has launched a review of the claims management market after concerns were raised about the sector.It will look at the root causes of poor practices across the market, including aggressive marketing, misleading adverts and unfair exit…
Evening Standard
Regulator to review claims management companies amid ‘poor practices’ concerns
Consumers were being let down ‘too often’, the Financial Conduct Authority said.
UK Watchdogs Probe Claims Market Misconduct
UK financial and legal watchdogs have initiated a joint examination into practices within the claims-management market, following concerns regarding unfair exit fees, misleading advertising, and aggressive marketing. The Financial Conduct Authority (FCA) announced the review on Wednesday, in collaboration with the Solicitors Regulation Authority (SRA), expressing worry that some law firms and claims management companies (CMCs) are failing the co…
FCA Announces Investigation into Claims Management Sector
Some may say they provide a useful service for those who cannot navigate various online portals, or claim directly from banks, insurers or public sector bodies. But others feel more regulation is needed on fees, [...] The post FCA Announces Investigation into Claims Management Sector appeared first on .
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