Claims management companies (CMC) will have their fees capped at a maximum of 30% of the customers' redress under plans outlined by the Financial Conduct Authority (FCA).
The regulator said today (21 January) some consumers currently face charges of more than 40% on the redress they receive via claims management outfits. It said the proposed cap would mean firms would be able to charge between 15% and 30% depending on how much redress a customer is due. Some people, therefore, could save "several thousand pounds", the watchdog said. The cap will apply to all claims where a consumer is awarded monetary redress, apart from payment protection insurance claims which are already subject to a 20% cap set by Parliament. The FCA took over responsibility fo...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
