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Claims management firms must clean up ads, regulator warns

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Claims management companies (CMCs) must do more to make sure their adverts are not misleading, according to the Financial Conduct Authority (FCA).

The watchdog said it had found "widespread poor-practice" in CMCs after reviewing more than 200 adverts.

The FCA has introduced a number of new rules to cover adverts issued by CMCs, which require the companies to:

- identify themselves as a claims management company

- state if a claim can be made to a statutory ombudsman/compensation scheme without using a CMC and without incurring a fee

- include information relating to fees which the customer may have to pay if a firm uses the term ‘no win, no fee’ or a term with similar meaning.

CMA takes action against RBS and Santander

Arnold Schwarzenegger PPI advert
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The Competition and Markets Authority (CMA) has ordered both RBS and Santander to appoint independent bodies to audit their payment protection insurance (PPI) process, after the banks failed to send, or sent inaccurate, annual PPI reminders.

Loan customers who were mis-sold PPI have until 29 August 2019 to claim for compensation.

The CMA says that RBS failed to provide reminders to almost 11,000 of its customers for up to 6 years, meaning those affected were unable to fully assess whether they wanted to continue paying for PPI, and were stopped from shopping around effectively.

RBS has now written to those affected, providing a reminder of their right to cancel their policy and has so far paid out over £1.5m in refunds to customers.

As for Santander, the bank sent out annual reminders containing incorrect information to over 3,400 of its mortgage PPI customers from 2012-2017.

It must now appoint an independent body to review its PPI processes and continue to maintain its systems to prevent further breaches.