What is the FSAs position on Claims Management Companies?
Some consumers may choose to use the service of a third party such as a claims management company (CMC). We believe it is important that the consumer makes an informed choice in these circumstances – i.e. understands that there are likely to be costs involved in using a third party, and what those costs are. CMCs generally charge a percentage of any compensation awarded; some also charge an upfront fee. In our consumer information we emphasise that consumers can access free complaints procedures through the firm, and then the Financial Ombudsman Service (FOS) if necessary. We require firms to have robust complaint handling procedures and firms are expected to treat their customers fairly.
