Dealers and their employees
may soon be targeted by claims management companies with cash
offers for customer data, according to compliance firm ITC
Compliance.
Matt Dyer, CEO of ITC, said:
“With a growing number of claims management companies chasing
market share, it’s only a matter of time before those who have
access to dealer customer records will be offered significant
inducements to hand them over.”
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By GlobalDataThis further risk comes on
top of recent comments by the head of the Financial Services
Authority signalling that the “light touch” approach they have
adopted for the regulation of financial products will
change.
Dyer said: “Regulation is
clearly about to become much more complex and time-consuming for
directly authorised motor dealers.
Inevitably, this will see
more switching to the safety and security of appointed
representative status, as has been the trend in other regulated
industries, such as with financial advisors and mortgage
brokers.
“Mis-selling scandals and the
credit crunch have made regulators rethink their approach, and the
actions of some claims management companies are only going to make
things more difficult for dealers.”
Dyer added: “Any slight discrepancies in documentation,
systems and controls will leave dealers unable to defend themselves
against such complaints brought.”
