Consultation outcome

Cutting costs for consumers in financial claims

• From: Ministry of Justice
• Published: 15 February 2016
• Last updated: 16 November 2017 — See all updates

This consultation has concluded

Download the full outcome

Consultation response

PDF, 291KB, 34 pages

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Detail of outcome

This response follows the Claims Management Regulation Unit’s consultation on proposals to place restrictions on the level of fees that regulated claims management companies (CMCs) can charge consumers for financial claims. The consultation ran between 15 February 2016 and 11 April 2016.

The paper provides a summary of the responses received on our proposals, our conclusions and next steps in relation to the consultation.

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Original consultation

Summary

Seeks views on proposals to place restrictions on the level of fees that regulated claims management companies (CMCs) can charge consumers.

This consultation was held on another website.

This consultation ran from
9am on 15 February 2016 to 11:45pm on 11 April 2016

Consultation description

This consultation seeks views and further evidence in relation to proposals to:

• cap the maximum completion fee to 15% (including VAT) for bulk claims (such as mis-sold payment protection insurance claims) with a single lender and cap the overall charge for claims worth more than £2,000 in total to £300
• introduce a maximum ‘cancellation’ fee of £300 for bulk claims when a consumer cancels their contract with a claims management company after the initial 14 day ‘cooling off’ period
• ban CMCs from receiving or making any financial payment for referring or introducing a consumer to a third party in relation to a PPI or PBA claim
• ban any fees where no relationship is found between a consumer and a lender
• ban all upfront fees for all financial claims, where CMCs ask to be paid before any work is carried out
• cap the maximum completion fee to 25% (including VAT) of the final amount of compensation awarded in all other types of financial case

Published 15 February 2016
Last updated 16 November 2017 + show all updates

1. 16 November 2017

   Consultation response published

2. 15 February 2016

   First published.