CMCs to be named for breaking rules

Updated: 
Phone callClaims management companies (CMCs) that have breached rules are to be named and shamed online by the industry watchdog.

Consumers thinking of using a CMC - such as firms offering help on claiming back mis-sold payment protection insurance (PPI) - will be able to see exactly what rules have been broken and the reason action has been taken.


From minor offences and warnings through to suspensions and cancellations, the Claims Management Regulator's online tool will be updated as and when action is taken.

Head of Claims Management Regulation Kevin Rousell said: "Consumers can sometimes unknowingly sign-up to a CMC that may be under investigation by my unit.
"By creating an online list that names CMCs that are being investigated it will ensure consumers know exactly what action is being taken and the reason for it. It will also give consumers peace of mind that their complaints are being acted upon.

"By publishing all enforcement action it will send a clear message to the industry that we will not tolerate firms that break the rules."

The regulator has already banned more than 100 PPI claim firms and warned a further 149 for poor practice as complaints continue to be made.

Last year, more than 10,000 complaints were made to the regulator, which found the main causes for consumer concern were misleading marketing, high-pressure selling, poor complaints systems and unclear fees.

As part of an industry wide crackdown, the regulator has also banned advertisements that offer vulnerable individuals a cash incentive for signing up to use their services.

And tough new conduct rules include bringing an end to all verbal contract arrangements between consumers and CMCs and enforcing written contracts before any fee can be taken.

SPONSORED FINANCIAL CONTENT