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Claims Management Companies & High-Cost Lenders: FCA Compliance Overview
- 1. Bridging the Divide:CMCs and High-Cost Lenders The FCA urges Claims Management Companies (CMCs) and High-Cost Lenders (HCLs) to foster better collaboration.
- 2. Understanding the Tension Points FalseClaims HCLs report CMCs presenting claims for customers who never took out a loan. False Claims HCLs suspend lending during complaint investigations, potentially denying credit and leading to cancellation fees. Broad LOAs HCLs are concerned CMCs use 'catch-all' Letters of Authority (LoAs) for multiple lenders without specific customer agreement.
- 3. CMCs' Concerns Excessive LoAChecks CMCs believe HCLs' LoA checks are overly stringent, hindering complaint progression. Information Sharing Some HCLs are reluctant to share information or streamline claims processes with CMCs.
- 4. Impact on YourCMC Operations The FCA's views necessitate robust systems and processes for CMCs.
- 5. 1 2 3 KeyActions for CMCs Validate Claims Ensure customer details are correct and investigate claim merits before submission. Transparent Fees Clearly explain all potential fees, especially cancellation charges, to customers. Customer Confirmation Obtain explicit customer confirmation to pursue claims on their behalf.
- 6. Enhance Your Complaints Process MeetDISP Requirements Ensure your complaints process aligns with regulatory standards. Conduct Root Cause Analysis Continuously learn from past issues to improve team performance.
- 7. MEMA: Your RegulatoryPartner MEMA offers extensive experience in FCA issues for claims management firms. We can advise and assist your team in achieving regulatory effectiveness. Contact Us Learn more