Clampdown on claims farmers

Claims management companies face a tougher regime when they come under the regulation of the Financial Conduct Authority (FCA) next April. The FCA published draft regulatory rules this week, providing a snapshot of how it will oversee the sector. Companies will need to be upfront about fees and services and highlight any free alternatives available such as ombudsmen schemes. Companies that buy lists of leads from third parties will need to carry out due diligence to ensure legalities have been followed and records kept. Records of customer calls must be kept for at least 12 months. Fines and suspensions will be used to deter rogue players.