Claims management companies (CMCs) handle a range of claims for compensation or other benefits. Find out what to expect if you decide to use one.
CMCs are firms or individuals that can help you make a claim, but they’ll charge you a fee for the service.
For example, if you think you've been mis-sold a financial product or service, you could use a CMC to help you complain. Or, if a financial firm goes out of business, a CMC could act on your behalf to help you claim compensation.
You don’t need to use a CMC to make a claim, it’s free and simple to do it yourself. If you’re concerned about the process, you can also get free guidance from MoneyHelper. Find out more about making a claim yourself.
If you choose to use a CMC, they may:
- investigate your claim and represent you
- help you deal with any paperwork
- put you in touch with lawyers, if needed
CMCs should also be able to let you know the likelihood of your claim being successful. If it’s unlikely to succeed, they should tell you.
Some CMCs may only act as lead generators. A lead generator identifies any possible claims you may be able to make, and then refers you to other CMCs or lawyers who may be able to help you.
Fees for using CMCs
It’s important to remember that, if you use a CMC, you’ll need to pay a fee. To make sure you get fair value for money, we introduced a cap to the fees you can be charged for financial services claims.
For claims started on or after 1 March 2022, the maximum fee you pay will depend on the value of your claim.
| How much you're awarded | Maximum % you can be charged | Maximum fee you can be charged |
|---|---|---|
| £1 to £1,499 | 30% | £420 |
| £1,500 to £9,999 | 28% | £2,500 |
| £10,000 to £24,999 | 25% |
£5,000 |
| £25,000 to £49,999 | 20% | £7,500 |
| £50,000+ | 15% | £10,000 |
If a lead generator is involved in your claim, they may also be paid a fee by your CMC or lawyer for passing on your case.
Watch: Using CMCs
Making a claim yourself
If you want to make a complaint or claim compensation yourself, you’ll have to follow the right process. If you’re concerned, organisations like MoneyHelper may be able to help you.
Read more about:
- Complaining about a financial product or service
- Claiming compensation if a firm goes out of business
If your claim is about a pension, The Pensions Ombudsman may be able to help. You can find more information about how to get compensation for a pension problem from MoneyHelper.
What to expect if you decide to use a CMC
CMCs that are authorised by us must follow our rules. They must:
- provide you with a 1-page summary of all the key information, before you sign a contract
- supply a detailed breakdown of how they will charge you, including examples (this may be called a 'cost illustration')
- offer a 14-day cooling off period during which you can cancel your contract without being charged
- update you on key developments with your claim
- tell you clearly about schemes such as the Financial Ombudsman Service or the FSCS, or any other official ways you can claim
- ask you to confirm that you don’t want to make a claim by yourself for free, if you’re making a financial services claim
- clearly explain how to complain if you’re unhappy with the service they provide
They must not:
- send you emails or texts (unless you’ve agreed to receive them)
- make marketing calls to you unless you’ve specifically agreed to receive them
- approach you in person
- use any form of high-pressure selling such as asking for on-the-spot decisions
- charge you more than 20% plus VAT of your claim if you're making a PPI claim which you started after 10 July 2018
Please check the individual legal regulators’ websites for information on what rules CMCs authorised by them must follow.
Complaining about a CMC
If a CMC is authorised by us and you're unhappy with how it’s handled your case, find out how to complain.
If the firm is regulated by a legal regulator, visit the relevant website for information about making a complaint.
