The Financial Conduct Authority (FCA) has launched new rules that will apply to claims management companies (CMCs) to prevent them from charging excessive fees to consumers owed compensation from financial services firms.
Rules apply to claims relating to new contracts entered into from 1 March 2022 and generally exclude pre-existing contracts already in place, according to the watchdog. As of today, the maximum consumers can be charged will depend on how much redress they are due, it said. "For example, if the redress amount is below £1,500 consumers can only be charged a maximum of 30% of their claim, or £420, whichever is lower. The changes are expected to save consumers £9.6m a year and thousands of pounds on some individual claims." The FCA added that the cap will apply to most claims where a c...
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