Upheld: Service failures generally complaint against Consultation Claims Ltd

Decision detail

Summary

Mr S complained that Consultation Claims Ltd processed Motor Finance Commission claims on his behalf without his consent, using personal data obtained from lead generators. CCL accepted they had obtained and used Mr S's data unfairly without proper consent verification. The ombudsman found CCL failed to fulfill their regulatory obligations under CMCOB 2.2 to ensure lead generators had appropriate systems in place to obtain consumer consent. The complaint was upheld and the ombudsman directed CCL to pay £100 compensation, finding this fairly recognized the worry and inconvenience caused while accounting for CCL's proactive response in cancelling the claims. The ombudsman clarified that CCL cannot be held responsible for the lead generators' actions, and Mr S may pursue separate complaints against them.

The Ombudsman's reasoning

CCL accepted that Mr S's data was obtained and shared without his consent, and that they set up claims unfairly. Under CMCOB 2.2, CCL were required to ensure lead generators had appropriate systems in place to obtain consumer consent. CCL failed to demonstrate they fulfilled this obligation. Had CCL acted fairly and properly verified consent, Mr S's data would not have been shared with them or they would have recognized consent was absent and not proceeded. The £100 compensation fairly recognizes the worry and shock caused by discovering his details were shared without consent and the time spent engaging with CCL, while also accounting for CCL's proactive response in cancelling claims at no cost. CCL cannot be held responsible for X's actions as separately regulated businesses, though Mr S may pursue separate complaints against X.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website