The Financial Conduct Authority has announced a review of the claims management market “following concerns that consumers are being failed by some claims management companies (CMCs) and law firms”. The review will look at the root causes of poor practices across the market, like aggressive marketing, misleading advertising and unfair exit fees. Other concerns include consumers being signed up without their consent – or without clear, upfront explanations of the implications. The review has been prompted by the recent spurt in motor finance claims but will also look at housing disrepair claims. Claims management companies are regulated by the FCA; they must have FCA permission to operate and are expected to comply with FCA rules.
