The UK’s financial watchdog is launching a probe into aggressive marketing, misleading advertising and unfair exit fees imposed by claims management companies.
The Financial Conduct Authority said it was also concerned customers were being signed up without their consent or by multiple representatives, causing confusion and delaying compensation.
These issues have been put “into sharper focus” by the approach to motor finance claims, as the FCA carries out a mass compensation scheme for customers missold car finance schemes with hidden commission arrangements.
“We are also concerned about the handling of other claims, such as housing disrepair,” the FCA said.
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