FCA to investigate poor claims management practices

Looking into CMCs and law firms

Jenna Brown
clock • 3 min read

The Financial Conduct Authority (FCA) is to review the claims management market and investigate if consumers are being failed by some claims management companies (CMC) and law firms.

The regulator is hoping that the review will uncover the root causes of poor practices across the market, it said today (6 May). The investigation will look at the use of aggressive marketing, misleading advertising and unfair exit fees, it said.  "Other concerns include consumers being signed up without their consent – without clear, upfront explanations of the implications of signing up or ticking a box, for example on social media adverts – or by multiple representatives, potentially causing confusion and delaying compensation," the watchdog added. The FCA said motor finance cla...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

FCA to introduce multi-firm review for bereavement processes

FCA to introduce multi-firm review for bereavement processes

Review expected to launch this year

Sophia Panayi
clock 08 May 2026 • 2 min read
IPT collects £9.04bn in FY25/26

IPT collects £9.04bn in FY25/26

£88m generated in March 2026

Jaskeet Briah
clock 23 April 2026 • 1 min read
IHT receipts hit £8.5bn

IHT receipts hit £8.5bn

Follows prolonged freeze on IHT thresholds

Sophia Panayi
clock 23 April 2026 • 3 min read