Case review: SafetyNet vs Impakt Claims

You may recall the claims management regulator was a unit of the Ministry of Justice and it regulated companies providing claims management services to England and Wales. Its regulatory responsibilities – which lie within the FCA Handbook under Conduct of Business sourcebook – passed over to the Financial Conduct Authority (FCA) on 1 April 2019, and this has recently been tested in the case of SafetyNet v Impakt.

We thought it was important to share our summary on this case so far.  It's still with the High Court to decide on the outcome and the result is eagerly awaited by lenders and, no doubt, CMCs.

In the meantime, lenders are urged to ensure that they have adequate processes, and of course resource in place, to manage such claims. This is particularly important now in light of the new Consumer Duty regime where the bar has been set a lot higher for firms in the way they support their customers. Firms must ensure they achieve good outcomes in the whole customer financial journey and manage the key customer harms – in particular affordability and forbearance.

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If you need support in putting together responses to CMCs/law firm or FOS claims or are reviewing your processes, policies or procedures in managing such claims, please do get in touch.