A claims management company is under investigation over concerns that customer signatures were forged during the sign-up process.
The Financial Conduct Authority announced today that it has opened an enforcement investigation into Consultation Claims Limited in relation to its handling of motor finance claims from April to December last year.
The FCA is looking into concerns that consumers may have been signed up during this period without their consent, with some allegations that signatures have been forged.
Investigators are looking into how customers were contacted, what they were told during and after onboarding and the information they were given about exit fees.
The FCA stressed it has not reached any conclusions about what has happened or whether Liverpool-based Consultation Claims has breached any rules.
The company agreed a voluntary arrangement with the FCA last December to suspend taking on new customers until March this year. It also wrote to all customers offering them a chance to cancel their arrangements free of charge.
After the company complied with FCA requirements, including by taking action to prevent any customers being sent contracts which may have included false signatures, the arrangement was ended and Consultation Claims was allowed to take on new customers.
A CCL spokesperson told the Gazette: ‘Consultation Claims is aware of the FCA’s announcement. The investigation relates to historical issues involving certain third-party suppliers. When concerns came to our attention, we terminated those relationships.
‘We have since strengthened our oversight of third-party providers and contacted all customers who may have been impacted. The company is engaging constructively with the FCA and looks forward to addressing the matters raised through the regulatory process. As this is an ongoing matter, it would not be appropriate to comment further at this stage. Consultation Claims remains focused on supporting its customers and continuing its day-to-day operations.’
The company was notified of the intention to open an enforcement investigation last month. The FCA said it was necessary to announce the investigation to allow customers to make a complaint if they believe they were signed up using forged documents.
The FCA’s enforcement guide states that it will not normally publicise an investigation but may do so in exceptional circumstances. The regulator said it considers that the exceptional circumstances test has been met in relation to this announcement, as it is desirable to ‘maintain public confidence in the UK financial system or the market, protect consumers or investors, and prevent potential widespread malpractice’.
This is the second company to be named as subject to an FCA enforcement investigation and comes amid a wider clampdown on poor practices and misleading advertising in motor finance claims.
It has already formed a joint taskforce with the Solicitors Regulation Authority to look into CMCs and law firms operating in tandem in this sector. As part of this work, the FCA has removed or amended more than 1,000 misleading adverts trying to encourage people to sign up.
