Claims firm investigated by watchdog over car finance sales tactics
FCA investigating major claims company over its sales practices
- The UK's Financial Conduct Authority (FCA) has launched an enforcement investigation into The Claims Protection Agency (TCPA), also known as My Claim Group, over its sales practices.
- The investigation focuses on concerns regarding what customers were told about compensation amounts, whether they were informed they could claim for free, and if they were pressured to sign up for car finance mis-selling claims.
- The FCA is developing an industry-wide compensation scheme for an estimated 14 million mis-sold car finance agreements and advises consumers against using claims management companies due to potential high fees.
- TCPA has temporarily paused new customer sign-ups and was required by the FCA to cease onboarding new clients and publicising new financial promotions.
- TCPA stated it is fully cooperating with the FCA, believes the investigation will exonerate them, and maintains that consumers were always aware they did not need to use a claims management company.