Investment - Articles - PIMFA welcomes moves on control of Claims Management firms

PIMFA has welcomed proposals from the Financial Conduct Authority (FCA) to create greater transparency and control costs for consumers that deal with Claims Management Companies (CMC).

 In its response to the FCA consultation on restricting CMC charges PIMFA notes that in the event of a consumer receiving a bad outcome, it is right they should be adequately compensated. But the current avenues available to consumers to seek redress are dominated by companies which often offer poor transparency about the nature of their services, while not providing value for money in terms of the fees they charge. To that end the Regulator’s proposals welcomed and are strongly supported by PIMFA.

 Simon Harrington, Senior Policy Adviser – Public Policy at PIMFA, commented: “We accept that in some cases the process of administering these claims can be lengthy, while the administrative demands put on consumers can be burdensome. It is therefore right that consumers are provided with the opportunity to, in effect, outsource a service that they could reasonably do themselves.

 “However, CMCs should be more transparent about the role they play in the claims process, as well as the likely involvement required on behalf of the claimant. More broadly, the costs which are currently levied on consumers are far too high and do not representative of value for money at all. We support the Regulator’s proposals which are right and proportionate.”

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