FSCS gives CMCs Permission to Sign Claim Forms For Clients During Lockdown
Claims management companies have now been given permission to sign application forms to the Financial Services Compensation Scheme for elderly and vulnerable clients during the coronavirus lockdown.
Through an update on the FSCS’s website, the industry-funded lifeboat boat has now confirmed it would now accept signed claim summary forms by a CMC where the client is self-isolating during the pandemic or does not have access to a printer and scanner.
However, the FSCS has made it clear that the completed form must also have written confirmation that the client has given their consent and read and understood the terms about the form being signed on their behalf.
With more changes to the terms of engagement for third parties, the FSCS has requested that CMCs and Solicitors agree to these terms when they log on to the online claims service.
The FSCS currently request that CMCs:
Challenge decisions where they believe there is worth.
Learn from previous answers the FSCS has providing when submitting a claim.
Require full pension or SIPP statements showing transactions/investments from the start.
Clearly state that any of the supported documentation cannot be submitted.
The Financial Conduct Authority took over from the Claims Management Regulator last year, assuming control of CMC regulation and have received requests from more than 900 companies to continue trading under the watchdog.
In June last year, the FCA exposed ‘problem cases’ in the CMC sector where there had been a growing pattern of bogus claims where there was no relation between the customer and the provider receiving the compensation. With low uphold rates for complaints submitted to the Financial Ombudsmen Service, the FCA now works against any firm applying for authorisation under the new regulator.
If you have any worries about your claim and would like to discuss how we can help give us a call on 01903 931043.
Information in the article was sourced from