Regulators to take action on poor claims management

The FCA is joining the SRA, ICO and ASA to address the ongoing problem of misleading advertising and inadequate information that some CMCs and law firms working on motor finance claims are publishing, and also the risk that they will charge clients excessively.

So far, 2 firms have agreed not to take on clients or advertise until the FCA is satisfied they comply with rules, 9 law firms have been required to provide information about their exit fees and 2 CMCs have agreed to change their exit fee policies.

The FCA has written to the CMCs it regulates to reiterate its expectations.