FCA flags poor practices in claims management market
FCA blog highlights poor practices by claims management companies and law firms in car finance complaints, including unwanted contact to non-customers.
The FCA is signalling concern over CMC conduct in car finance complaints, citing aggressive marketing and poor consumer outcomes. Firms handling high CMC complaint volumes should expect closer scrutiny of process integrity and customer treatment.
Foreshadows potential regulatory action on CMCs and operational pressure on firms managing high complaint volumes.
Action Required
Review interactions with CMCs and complaint-handling controls; ensure robust validation and customer authentication processes.
Relevant to motor finance redress dynamics and broader CMC supervision.
Tighten CMC intake controls: validate authority, deduplicate claims, and monitor for fraudulent or speculative submissions. Maintain audit trails for regulatory review.
“FCA notes that some claims firms make difficult situations worse, citing car finance complaints. Poor practices include unwanted texts or emails sent to people who never engaged with the firm.”