Four UK regulators have joined forces to address poor practices in the fast-growing motor finance claims sector, warning that some claims management companies (CMCs) and law firms are misleading consumers, charging excessive fees, and mishandling personal data.
The Financial Conduct Authority (FCA), Solicitors Regulation Authority (SRA), Information Commissioner's Office (ICO) and Advertising Standards Authority (ASA) have launched a coordinated initiative to tackle misleading advertising, inadequate disclosure, and the risk of inflated exit charges across firms pursuing compensation for motor finance agreements. The FCA said it is acting after identifying "misleading advertising and inadequate disclosure" that has led some consumers to sign contracts "without the facts". FCA director of consumer finance Alison Walters said: "Misleading adve...
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