The FCA has announced that the First-tier Tribunal (the Tribunal) has upheld a £91,000 fine imposed on Hall and Hanley Limited (H&H).

The fine was initially implemented by the Claims Management Regulator (CMR), the former regulator for claims management companies (CMCs), although the hearing for the Tribunal was conducted by the FCA which has since taken over the functions of the CMR.

H&H, a CMC with its business focused on claims for mis-sold payment protection insurance (PPI), was fined £91,000 for data breaches and the unauthorised copying of client signatures.

The CMR first found that marketing text messages concerning PPI claims had been sent to consumers’ mobile numbers – although H&H had failed to check that affected consumers had consented to receiving such messages – and the firm had in fact breached rules requiring CMCs to obtain third party data in accordance with applicable laws.

Furthermore, the CMR found there had been unauthorised copying of clients’ signatures – submitted by H&H to financial firms – which the regulator considered a negligent failing to detect and prevent such conduct by one of its employees.

The Tribunal upheld the CMR’s decision in its entirety, concluding that H&H had failed to act with the required degree of competence, and indicated that for copied customer signatures, the underlying matter was ‘so serious that a financial penalty is justified.’

FCA executive director of enforcement and market oversight, Mark Steward, said: “The failure by H&H to take previous advice and warnings from the former claims management regulator and the firm’s repeated use of consumer data and customer signatures without their consent are clear examples of a firm falling short of the standards we expect.

“The decision by the Tribunal to uphold the findings of the CMR is another important message to industry that firms must conduct all business with integrity and due care, skill, and diligence.”

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