The Professional Financial Claims Association (PFCA) was founded by some of the UK’s leading financial claims management companies (CMCs) in 2013. This followed a consultation period with the Claims Management Regulator (CMR), Sir Mark Boleat, industry trade bodies, other associations, consumer groups’ including Moneysavingexpert.com, Which? and experts in the field of financial services. It was clear during this period of consultation there was a desire for more accountability and adherence with CMR regulation which would 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 were recognised. The PFCA acknowledged that it would not represent all such firms, however, it welcomed open dialogue with firms and other parties interested in restoring faith and confidence within the sector. This it continues to do.
A respected ‘Voice’
To this day, the PFCA is a respected ‘voice’ within the industry; it is consulted on matters of change by the CMR with whom it maintains regular open communication on numerous matters. It is also an active and recognised member of the CMR’s Regulatory Consultative Group and also engages with the FCA, including the FCA’s regulatory transition team. The PFCA was a significant participant in the response to the CMR when it responded to and consulted on “Cutting the costs for consumers – financial claims” this is demonstrated in the CMR’s recent Consultation Response (16th November) as part of the proposed amendments to the Financial Guidance and Claims Bill.
High standards and independent accountability
Key to raising the bar and compliance with CMR regulation the PFCA, following consultation, published its own Code of Practice (COP) which has 54 enhancements to the current required regulation. Compliance with this COP is ensured with both new membership Audits and annual member Audits. These are carried out by Rockstead https://www.rockstead.co.uk/ who are independent; this requirement for new members has often proved to be a barrier to entry for membership.
Data and Claims managed – £100bn to be repaid
The data shared by members has proved to be invaluable to Nick Baxter, former independent chairman when addressing matters which result in consumer detriment. The PFCA currently has over 275,000 live PPI claims under management, this and historic data has enabled such respected media as the Financial Times, BBC TV, Radio, and others to publish facts and assist in bringing poor claims handling issues to the fore. It is now undisputed that there is a long way to go before those who mis-sold PPI repay the £100bn to consumers in premiums and interest.
It should be noted, members of the PFCA manage all types of financial claims.
The PFCA Code of Practice is available on the association’s website and Money Management Teams’ compliance with the code is subject to an audit by an independently appointed company.
The PFCA Code of Practice: http://www.pfca.org.uk/code-of-practice.html