Register with us for free to get unlimited news, dedicated newsletters, and access to 5 exclusive Premium articles designed to help you stay in the know.
Join the UK's leading credit and lending community in less than 60 seconds.
The Financial Conduct Authority (FCA) has warned enforcement action will be taken against consumer credit firms who are seriously failing to comply with its complaints policy.
Group Editor
In a ‘Dear CEO’ letter published by the watchdog last week (September 13), it was revealed the FCA has carried out complaints handling research where it reviewed firms’ data, final response letters and website information.
The regulator said it found some concerning issues including firms not complying with the complaints handling policy.
The letter said: “Resolving complaints effectively is an important way for firms to identify and correct mistakes in the treatment of customers, and an important means to identify and address common or systemic issues that give rise to complaints.”
Although the regulator said it found some good practice of its Dispute Resolution Rules (DISP), which have been in force since 2007, it found some generally poor practices of non-compliance too.
Main concerns of poor handling of consumer complaints were:
It also found evidence to suggest firms have been failing to record and report accurate complaints data – even though the FCA has required all consumer credit firms to report all complaints since June 30 2016.
The watchdog laid out its expectations of firms once more, stating they must review how they identify, record, and deal with complaints as well as how this is communicated to customers.
The letter, written by Jonathan Davidson, director of supervision – retail and authorisation at the FCA, ends with the note: “Where we find serious failings we shall consider referring such cases to our enforcement division for formal action to be taken.”
Get the latest industry news