FCA launches review of claims management market practices

FCA opened a review of claims management companies and law firms over aggressive marketing, misleading ads and unfair exit fees.

The FCA is reviewing root causes of poor practices among CMCs and law firms, including consumers being signed up without informed consent. The review may lead to tightened conduct rules and could affect the volume and quality of consumer redress claims reaching firms.

Outcome will shape claims pipeline quality, complaint handling burden and consumer redress dynamics for firms.

CMC conduct directly affects redress costs and complaint workloads at regulated firms.

“FCA is launching a review of the claims management market following concerns consumers are being failed by some CMCs and law firms, citing aggressive marketing, misleading advertising, unfair exit fees and consumers signed up without consent.”