FCA launches probe of claims management companies

The Financial Conduct Authority has launched a market review over worries that consumers are being failed by some claims management companies and law firms.

The regulator will look at the root causes of poor practices across the market, like aggressive marketing, misleading advertising and unfair exit fees.

It detailed that other concerns in the spotlight include consumers being signed up without their consent – without clear, upfront explanations of the implications of signing up or ticking a box, for example on social media adverts – or by multiple representatives.

The FCA flagged these actions can cause confusion and delay compensation.