The Currency analytics
By Sydney TheCMO
Regulators crack down hard. The Financial Conduct Authority and Solicitors Regulation Authority dropped a joint warning today targeting claims management companies and law firms…
Both watchdogs want firms to run proper checks before taking on clients, making sure nobody else is already working the same claim.
Sheree Howard from the FCA didn't mince words: "Firms must confirm no other representative is already instructed before proceeding. Any termination fees must be reasonable.
Both agencies plan to keep hammering CMC and law firm practices, going after any sloppy procedures they find.
Problems with onboarding, consumer info, and sketchy advertising have created this dual representation nightmare.
Starting February 5, they're launching an awareness campaign warning consumers about fraudulent car finance lenders.
Consumers don't actually need to hire a CMC or law firm to claim compensation - doing so just means paying hefty fees for something they can handle themselves.
The FCA keeps tweaking its oversight approach. Back in October, they confirmed they're examining exit fees closely.
The SRA updated its claims management guidance to cover termination fees and multiple representation issues.
Both authorities keep watching the regulatory landscape closely, staying committed to consumer protection in motor finance claims as things keep developing.
The SRA reported on January 31 that investigations into those 71 law firms managing high-volume consumer claims continue.
As of October last year, the FCA has been actively refining regulations around exit fees, leveraging powers under the Digital Markets, Competition and Consumers Act 2024.
The FCA-SRA collaboration shows a united front against malpractice in the claims management industry.
On February 4, the FCA stressed consumer awareness importance in its latest communication. The authority said consumers should know all their options before deciding to engage…
The SRA's Warning Notice from January 2026 demands law firms clearly communicate all potential costs upfront.