Motor finance claims bad practice tackled by FCA taskforce
Motor finance claims mishandling will be tackled by a new joint taskforce set up by the Financial Conduct Authority.
It is joining the Information Commissioner’s Office (ICO) and Advertising Standards Authority (ASA) to share information and take co-ordinated action against claims management companies and law firms that it believes are mishandling motor finance claims.
It is also reminding customers that the FCA’s motor finance redress scheme will be free to use and consumers using third parties may lose up to 30% of any compensation.
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 do 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 decisively.”
Miles Lockwood, director of complaints and investigations at the ASA, added:
“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.”
