Allay apply to have their authorisation cancelled

[EXC]

Allay have applied to the FCA to have their Claims Management license cancelled.

Although this is good news in that they'll be less likely to scam consumers in the future, it's not necessarily good news for existing 'customers'.

They'll still be able to chase people for commission for claims they made when they were authorised and it's likely that they'll sell on existing claims and customer details to other scumbags like Bank Smart.

We're unsure as to how long the Claims Management Ombudsman will continue to accept complaints about them.

We've asked FCA to clarify some of the above points and we'll let you know their response.

[pt2537]

Best news ive heard all day.

[Celestine]

Flipping AMAZING news!!! Can't help thinking you played an important role in constantly exposing their horrible conduct - nice result. X

[EXC]

We've asked FCA to clarify some of the above points and we'll let you know their response.

Here's the response.

Question: How long do you expect the authorisation cancellation process to take? Days, weeks, months or years?

As the Financial Services Register shows, Allay Claims Ltd has applied to cancel its application for authorisation. Any cancelation will be handled by our Cancellations Team who will conduct a full assessment of the firm’s ability to meet the Threshold Conditions and whether the firm is ready, willing and organised to do so. We do have a Service Level Agreement to complete applications within 12 months or 6 months once an application is complete however, in some cases, we will extend this should further assessment be required. I cannot go into details about Allay’s position because of Section 348 of FSMA.



Question: What & when are Allay's obligations in informing customers of the cancellation of their authorisation?

In terms of obligations for firms to contact customers about the potential wind down of a CMC, please see CMCOB 6.3 (Ceasing regulated claims management activities) which sets out details of a firm’s obligations when cancelling its permission. The FCA Principles set out in PRIN 2 [www.handbook.fca.org.uk/handbook/PRIN/2/1] also applies to regulated firms looking to cancel their permission, this does include keeping customers informed. The Supervision and Cancellation Teams will supervise any potential wind down to ensure consumers are not harmed.



Question: At what point does the Claims Management Ombudsman stop accepting complaints about them?

At the point of cancellation, CMCs will need to have no outstanding liabilities, such as complaints at the Claims Management Ombudsmen. Whilst we cannot go into details about the Allay case, we will ensure that a wind down does handle all the complaints compliantly and that consumers will receive the best possible outcome where possible.



Question: No doubt Allay will be flogging their 'customers' details to other scumbags like Bank Smart but will they be able to transfer claims under legitimate interest?

If any CMC would look at purchasing another client book, we would expect to be notified under SUP 15 as this would be a notable change to the firm’s business plan. As part of any potential transfer, we would look at whether this is compliant with the Data Protection legislation and that consumers were protected as part of any transfer. In respect of consumer contracts and the transferring of client data, assignment is possible if the contracts legally permit this, but we would prefer novation to a new contract as this process has less risk of harm to consumers.

[EXC]

So the information on Allay's Financial Sevices listing about their application to cancel their authorisation has mysteriously disappeared.

I've asked FCA to clarify what the hell's going on but knowing them I won't get an answer any time soon.

[Guest]

God moves in mysterious ways