You are here: Home - Credit Cards & Loans - News -

Regulator fines claims management company £70k for misleading customers

Written by:
A claims management firm has been fined £70,000 for misleading consumers through its websites and printed materials.

This decision follows the transfer of regulatory responsibility for claims management companies to the Financial Conduct Authority (FCA) on 1 April 2019.

Professional Personal Claims Limited’s websites and printed materials prominently used the logos of five major banks, which could have misled consumers into believing they were submitting redress claims for mis-sold payment protection insurance (PPI) directly to their banks, rather than through a claims management company (CMC) for a fee, the FCA said.

The regulator also said Professional Personal Claims failed to present accurate, fully formed, detailed and specific complaints to banks.

Mark Steward, executive director of enforcement and market oversight at the FCA said: “CMCs have an important role to play in helping to secure compensation for their customers. This is especially true in the case of those consumers who might not otherwise make a claim.

“PPC’s misleading website and marketing material suggested PPC was associated with the five banks when this was not the case. Claims management firms must ensure their advertising is accurate. Not only in terms of what they say about themselves and their services but also in terms of what is represented.”

Professional Personal Claims was originally investigated and fined by the previous regulator for CMCs, the Claims Management Regulator (CMR).

On 5 December 2018, the CMR determined that Professional Personal Claims had breached the previous CMC conduct rules by using websites and marketing materials that were misleading and by submitting misleading material to financial firms in support of its clients’ PPI redress claims. The CMR imposed a £70,000 fine for these failings.

Professional Personal Claims appealed this decision but while the appeal was pending, the FCA took over regulation of CMCs.

On 16 September 2019, after reviewing the evidence put forward by the FCA, Professional Personal Claims withdrew its appeal, and the FCA therefore imposed the £70,000 fine.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
For sale sign
Price-fixing cartel of Berkshire estate agents fined £600,000

Three estate agents from Berkshire have been fined more than £600,000 for fixing the commissions they charged on residential sales.