A new taskforce will tackle poor handling of motor finance claims by some claims management companies (CMCs) and law firms, after the Financial Conduct Authority (FCA), Solicitors Regulation Authority (SRA), Information Commissioner’s Office (ICO) and Advertising Standards Authority (ASA) agreed to join up their efforts.
The announcement comes as the FCA prepares to 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. It will take swift action to tackle issues with unsolicited and misleading advertising, meritless claims, multiple representation, and unfair exit fees.
Deb Jones, Executive Director of Transformation and the SRA’s taskforce lead, said: ‘We want consumers to have confidence in the system. The taskforce is a great example of how we as regulators can use our 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.’
Alison Walters, Director of Consumer Finance and FCA taskforce lead, said: ‘Our scheme will be free and people don’t need to use a CMC or law firm. Should they decide to so, it’s important that they can trust CMCs and law firms to act in their best interests. This taskforce will ensure we deal with problems quickly and act decisively.’
Andy Curry, Head of Investigations at the ICO, said: ‘The law is long-standing, clear and simple – do not send unsolicited direct marketing without consent. We provide advice and support to help companies to comply, but where we see unlawful practices causing harm to the public, we will take action to the fullest extent. This is a serious issue, and we will work alongside our taskforce partners, pooling our expertise, knowledge and powers to address it.’
Miles Lockwood, Director of Complaints and Investigations at the ASA, said: ‘It’s 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.’
