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| Regulators launch joint taskforce to crack down on poor practice in motor finance claims | FCA |
Context
The FCA has announced a new joint regulators taskforce to crack down on poor practice in motor finance claims, which will tackle poor handling of motor finance claims by some claims management companies (CMCs) and law firms The FCA, Solicitors Regulation Authority (SRA), Information Commissioner’s Office (ICO) and Advertising Standards Authority (ASA) have agreed to join up their efforts.
Key points to note and next actions
- The announcement comes as the FCA has set out its final compensation scheme for motor finance customers.
- The regulators will step up efforts to share intelligence and continue to take co-ordinated and targeted actions using the full extent of their powers to mitigate harm to consumers.
- The taskforce will take swift action to tackle issues with unsolicited and misleading advertising, meritless claims, multiple representation, and unfair exit fees.
- The scheme will be free, and people do not need to use a CMC or law firm. Should they decide to do so, it is important that they can trust CMCs and law firms to act in their best interests.
- The taskforce wants consumers to have confidence in the system. It is a great example of how regulators can use collective expertise and powers to not only take action, but also to improve consumers’ awareness of the standards they can expect from law firms and CMCs.
- It is vital that ads promoting motor finance redress services are clear about the commitments and costs of engaging with a CMC or law firm. The ASA will take robust and proactive action to tackle misleading advertising of such services, working in partnership with other regulators as part of this taskforce.
- The law is long-standing, clear and simple – do not send unsolicited direct marketing without consent. The ICO provides advice and support to help companies to comply, but where it sees unlawful practices causing harm to the public, it will take action to the fullest extent.
- The web page includes advice for consumers.