Started by Athena Law Solicitors, March 29, 2019, 15:14:00

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

Athena Law Solicitors

From Monday 1st April 2019 the Financial Conduct Authority takes over control of claims management companies.

In published guidelines the FCA has expressly confirmed that for any unregulated company to undertake section 75 claims from 1st April 2019 they will have to be regulated by the FCA.


"Firms entering claims management regulation for the first time

The laws that were created to transfer regulation of claims management to the FCA also made some changes to which firms are regulated. This means some firms will be entering regulation for the first time. This mostly relates to:

- firms that are incorporated in Scotland, and only serve Scottish customers, or
- firms that only handle claims about Section 75 of the Consumer Credit Act 1974

These firms still need to register with us for temporary permission to continue operating. See temporary permission for more information.
When these firms register for temporary permission, we will check that the firm is entitled to register. This means making sure that the information submitted by the firm about its trading history is truthful and accurate.

They will then need to apply for authorisation in application period 1, which will be open from 1 April to 31 May 2019. This is when we will assess whether or not the firm meets our requirements and conduct standards."

From 1st April it will be a criminal offence to attempt to conduct section 75 claims, or even give advice in connection with the same.

These changes came following a lengthy consultation process which raised concerns regarding the conduct of unregulated companies in this area including-

- making misleading promises

- not doing the work adequately or at all

- significantly overcharging

- nuisance calls

These changes willl be catastrophic for many rogue operators. they can no longer pass themselves off as lawyers. They can no longer cold call. They can no longer deal with these claims at all. I would imagine the banks will strictly enforce these changes and refuse to communicate with such companies.

Further any contract entered into with one of these compnies will, from 1st April, probably be unenforecable as it will offend public policy.

Athena Law Solicitors


Athena Law Solicitors

Athena Law Solicitors


Athena Law Solicitors

Law Society Reports on the changes


Jonathan Davidson, executive director of supervision at the FCA, said the regulator regards CMCs as playing an important role in helping people secure compensation, but that they must obey the rules. 'The new regime has consumer protection and CMC professionalism at its heart,' he said. 'It will mean that customers will be protected from claims management cowboys and get a better deal.'

Athena Law Solicitors


Athena Law Solicitors

D DAY 2 will arrive 1st October 2019.

On 1st April 2019 a significant number of "timeshare salesmen" registered their claims businesses with  the FCA and were granted temporary permission for 6 months. During this 6 month period the FCA will have been reviewing the applications closely.

Temporary permissions will be running out on 1st October 2019 whereupon I would anticipate many of these companies will have their applications rejected by the FCA.

If you have signed up with an "FCA regulated" claim firm since 1st April 2019 you would be best advised to check with the FCA whether or not the company you have engaged has been granted full FCA permissions.

Athena Law Solicitors


Powered by EzPortal