About the Professional Financial Claims Association

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Consulting and understanding the ‘Financial Claims’ sector

The Professional Financial Claims Association has been founded by five of the UK’s leading financial claims management companies. This follows a consultation period with its regulators, industry trade bodies, other associations, consumer groups and experts in the field of financial services. It became clear there was a desire for more accountability and adherence with regulation which will help raise standards in the financial claims management sector, also to highlight poor practices and ensure that those who do continually work towards higher standards of consumer care are recognised. The PFCA acknowledges that it will not represent all such firms, however, it welcomes open dialogue with firms and other parties interested in restoring faith and confidence in the sector.

Objectives

Highlighting professional and ethical standards and practices within the claims management sector, to become recognised as a credible and authoritative ‘voice’ on behalf of its members. ‘Putting Consumers First’, helping them understand the PFCA’s values, restoring a general erosion of trust and ensuring they have ‘access to justice’.

The PFCA key points

  • An authoritative and credible ‘voice’ within the CMC sector
  • A Code of Practice which ‘puts the consumer first’
  • Independent accountability for regulatory compliance
  • A wealth of experience in financial claims management
  • Committed to high standards of consumer care
  • Addressing consumer issues and industry negativity
  • Offering the CMC sector Services and Benefits

Addressing Consumer and industry negativity

The Financial Claims Management Sector had been subject to rapid growth with over 1,100 firms authorised by the Ministry of Justice in 2013. This regulation is now under the Claims Management Regulator (CMR) and numbers have reduced to less than 800 as the market consolidates. Growth had been fuelled by one financial mis-selling scandal after another being exposed by regulators. In particular mis-sold PPI, this attracted numerous CMCs to enter the sector; many have operated outside of its regulatory requirements, often to the detriment of consumers. The PFCA sets out to distinguish its members from questionable practices adopted by such CMCs.