The FCA has fined claims management company, Crosfill & Archer Claims Limited, £110,000.
This fine was for making unsolicited telemarketing calls to people who registered not to receive this type of sales call, where the firm had no evidence they had consented to receive the call or where the firm was unable to confirm what consent had been obtained on customer data purchased from third party data providers.
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said: ‘Cold calling customers who elected not to receive sales calls is an example of the type of cavalier behaviour claims management firms should not be engaging in. Firms need to ensure they have the right governance and due diligence in place, and we will take action when we see behaviour that threatens legitimate consumer rights and interests.’
This decision follows the transfer of regulatory responsibility for claims management companies (CMCs) to the FCA on 1 April 2019. The fine was originally imposed by the MOJ in 2018 but appealed by the firm. The appeal was struck out by the Upper Tribunal after the firm failed to file relevant documents in time.
Notes to editors
- Final notice: Crosfill & Archer Claims Limited
- On 1 April 2019, responsibility for the regulation of CMCs was transferred from the Claims Management Regulation Unit, a unit of the Ministry of Justice that regulated companies providing claims management services to England and Wales, to the FCA.
- In January, the FCA published proposals to introduce a price cap on the fees CMCs charge their customers in relation to claims for financial products and services.
- In May, the FCA published proposals to stop the practice of ‘claims management phoenixing’, by banning CMCs from managing FSCS claims where they have a relevant connection to the claim.
- Since taking over the regulation of CMCs, the FCA has published:
- 'Dear CEO' letters on financial promotions and acting for customers (June 2019) and the importance of carrying out due diligence to ensure the validity of claims (October 2019).
- A joint statement with the Information Commissioner's Office and the Financial Services Compensation Scheme (FSCS), handling personal data and directing consumers to FSCS (February 2020).
- A portfolio strategy letter, which sets out the potential harms that CMCs could cause along with supervision strategies for dealing with them. This followed a comprehensive analysis of the portfolio.