FCA have today launched a consultation which proposes to introduce a cap on the fees claims management companies (“CMCs”) charge their customers in relation to claims for financial products and services.
The cap will apply to all claims where a consumer is awarded monetary redress, apart from PPI claims which are already subject to a cap.
As part of the proposals, CMCs will be also need to disclose key information, such information about how the fees they pay will be calculated and pointing customers to the free alternative routes to redress. This information must be disclosed to consumers before they enter into a contract, to help consumers make better-informed decisions about using CMC services.
Read the consultation paper here: https://www.fca.org.uk/publications/consultation-papers/cp21-1-restricting-cmc-charges-financial-services-and-products-claims