FCA tells CMCs and High Cost Lenders to work together on complaints

FCA has received several communications from high cost lenders and CMCs who are not happy with how each other has dealt with complaints brought by consumers against high cost lenders using CMCs. Amongst the lenders’ complaints were that CMCs use “catch” all letters of authority to pursue several lenders, and bring claims in instances where there has never been a loan. Amongst the CMC complaints were that lenders may suspend lending to clients who bring complaints, which may pressurise the client intro dropping the complaint, and that lenders take excessively long to check letters of authority.

FCA found that, in the main , the customers have had legitimate grounds for complaint, but has noted to CMCs that they must not make claims which are frivolous, vexatious or do not have a good arguable base and must have checked the relevant facts and be able to substantiate claims.

Emma Radmore