The UK’s Financial Conduct Authority (FCA) has, for the first time, publicly identified The Claims Protection Agency, a claims management company, as the subject of an ongoing investigation. This action follows a High Court judgment that dismissed the company’s appeal against the FCA’s decision to announce the probe. The FCA had previously faced opposition when attempting to routinely name firms under investigation.
The Claims Protection Agency, which operates under 12 different trading names including My Claim Group, was informed of the FCA’s intentions in September. The investigation focuses on the company’s sales tactics used to attract customers for potential car finance claims. The FCA will examine whether customers were properly informed about potential redress, advised that claims could be made for free, and if undue pressure was applied during the sign-up process.
The Claims Protection Agency stated that it has fully cooperated with the FCA and believes the investigation will clear the company’s name. It also stated that claims on behalf of My Claim Group clients are handled by experienced legal firms regulated by the Solicitors Regulation Authority. Claims management companies assist individuals in pursuing compensation or other financial redress. The Financial Conduct Authority is the conduct regulator for nearly 60,000 financial services firms and financial markets in the UK.
The FCA stated the announcement would allow customers of the claims management company to consider their options. The FCA has not yet concluded whether any rules have been breached and has not provided a timeline for the investigation’s completion. This follows an earlier Supreme Court ruling on car finance commissions and the FCA’s subsequent consultation paper regarding a redress scheme for consumers who may have been mis-sold car finance.
