Following the Queen’s Speech yesterday to the UK parliament, the Personal Finance Society’s (PFS) chief executive Keith Richards said the PFS welcomes the Government’s decision to put the FCA in charge of regulating claims management companies.
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Richards said the FCA has the resources needed to enforce the existing regulation.
According to Richards, while there are many instances where claims management companies provide valuable support to consumers entitled to compensation, there is a need for tighter enforcement of regulations.
Richards said better enforcement will bring two significant benefits for customers:
First, they will be less likely to be pestered by claims management companies in unethical ways.
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By GlobalDataSecond, they won’t have to pay premiums that are inflated by unscrupulous firms coaching people into making frivolous or fraudulent claims.
In a statement the PFS said: “Cracking down on these firms using a proven regulator is welcome news and we look forward to working with the FCA and other important stakeholders to make a success of the new regime.
“It is disappointing that the uncertainty resulting from the General Election has forced the Government to water down its earlier commitments to scrap the triple lock and introduce sustainability into the welfare system.”
The PFS added it is clear that the process of leaving the EU has created a very full agenda for Parliament.
However, to make Brexit a success, the organisation said there must be a resilient welfare system and that can only come about if we have a strong culture of saving.
Richards said in order to prepare for life after Brexit, the Government should establish a permanent commission of experts to help create a public consensus around pension policy, and a strong savings culture.
