Claims management company (CMC) complaints - ask the ombudsman your question

Legal_Ombudsman · 1 October 2015 at 9:26AM

Hi widdler,

Thanks for your post and sorry to hear about the problems you are having. In short, yes, you do have the right to complain. Based on your post, it would seem that you are unhappy with both the initial advice you were given by the CMC (about the level of involvement you would have to have in your claim), and the failure of the CMC to appeal your unsuccessful credit card claim and/or advise you of your right to appeal. These are service issues that would fall within our jurisdiction to consider.

You would need to complain to the CMC in the first instance, and we would recommend that you do this in writing (letter or email). If you are not satisfied with the CMCs response, or do not get a response within eight weeks, we can then investigate matters for you.

If you would like any further information on our process, or need advise and assistance with making your complaint to the CMC, please contact us on 0300 555 0333 (option 1). You can also visit our website at www.legalombudsman.org.uk/cmc/ where we have a Live Chat facility.

magpiecottage · 1 October 2015 at 10:43AM

Just to say that I managed to get my complaint re-opened. There seems to have been a failure to match documents to the file properly. The adjudicator (sorry - that is FOS rather than LeO terminology) has taken the view that it should be upheld but it is now going to an ombudsman.

Legal_Ombudsman · 13 October 2015 at 3:31PM

We have created some consumer guidance recently that that we hope you find useful:

Claims management complaints - can we help? http://www.legalombudsman.org.uk/wp-content/uploads/2014/09/can-we-help.pdf

Top tips if you are considering instructing a CMC: http://www.legalombudsman.org.uk/wp-content/uploads/2014/09/Top-tips-instructing-a-claims-management-company.pdf

Common mistakes made by CMC customers and how to avoid them: http://www.legalombudsman.org.uk/wp-content/uploads/2014/09/Common-mistakes-customers-of-CMCs-make.pdf

Alpine_Star · 13 October 2015 at 4:36PM

In the Common mistakes made by CMC customers and how to avoid them it says:

''1. Be aware of which accounts the CMC are going to make a claim about on your behalf. Most CMCs’ contracts will say that they are going to look into all of your accounts and, if you have joint accounts, they may look at these too. Be aware of which accounts the CMC are going to work on and let them know if there are any accounts you do not need their help with, put this in writing (an email is fine).''

I don't know how that's going to work. How can you unilaterally vary the terms of the contract by simply sending an e-mail?

CMCs who's contracts mean that you assign the rights to PPI claims on any account you might have had and for which there is no specified end date are unfair especially because it can make it very expensive to cancel and LeO shouldn't tolerate them.

Legal_Ombudsman · 13 October 2015 at 5:00PM

Hello Alpine Star,

Thank you for your comments. We recommend that you are clear with the CMC about which claims you are instructing them for and which ones you are not. If they then look into claims that you have specifically told them not to look at, we will consider this when looking into any complaint about the service provided.

esmerellda · 13 October 2015 at 7:14PM

So I think you are saying that if I signed up with a CMC back in 2011 and they have yet to obtain any refunds for me, I could write to them to tell them I don't wish them to look into, say, Halifax Loan, Barclay Credit Card, Welcome Finance etc and then pick up sorting it out myself ? And this would stop the CMC trying to claim 35% from any refunds I successfully obtain from those companies, despite it being in the contract they have the rights over 35% of any and all refunds for PPI ?

( just checking )

Actually, would I be able to cancel any services ordered with the CMC for lack of service over the last 4 years, take up the complaints myself, succeed and not worry about having to pay the CMC... where would the LeO stand on that ?

Alpine_Star · 13 October 2015 at 8:05PM

Legal_Ombudsman wrote: »

We recommend that you are clear with the CMC about which claims you are instructing them for and which ones you are not.

The problem is that many CMC don't work like that ie take 'instructions' on specific claims. They get your agreement to rifle through your credit history to find potential claims with any and all lenders. You know like the ''Have I got PPI?'' model.

This leaves the consumer with no control. And as esmerellda alluded to, if at any point you attempt to restrict or cancel the agreement the CMC will charge you for ''work done'' on what was their own self-initiated fishing exercise without even having identified any claims.

~Brock~ · 14 October 2015 at 9:34AM

Alpine_Star wrote: »

The problem is that many CMC don't work like that ie take 'instructions' on specific claims. They get your agreement to rifle through your credit history to find potential claims with any and all lenders. You know like the ''Have I got PPI?'' model.

This leaves the consumer with no control. And as esmerellda alluded to, if at any point you attempt to restrict or cancel the agreement the CMC will charge you for ''work done'' on what was their own self-initiated fishing exercise without even having identified any claims.

The subsequent issue with the 'Have I got PPI' model is that after the fishing exercise has been completed, the subsequent claims they make to the individual lenders are based on completely fabricated series of allegations.

This is a clear breach of Section 2 of the Fraud Act 2006 and it is a complete and utter joke that this practice has been virtually ignored by the relevant regulators since the day these firms crawled out from under their stones.

Legal_Ombudsman · 14 October 2015 at 12:10PM

[FONT=&quot]Hi Esmerellda and Apline Star,[/FONT]

[FONT=&quot]Thank you both for your comments.[/FONT]

[FONT=&quot]The key is to agree with the CMC what accounts / lenders are to be included in their investigations before you sign a contract. The contract you sign should reflect what has been agreed; if it doesn’t you shouldn’t sign it.[/FONT]

[FONT=&quot]If you have already signed a contract that allows the CMC to investigate all potential claims in your name/joint names; you will need to consider the cancellation terms in the contract. These can vary, so I would recommend that you review these terms before you decide to pursue the claims yourself and / or cancel the contract with your CMC.[/FONT]

[FONT=&quot]It is often the case that a cancellation fee will be charged to either reflect the work done, or if a claim has been started, to maintain their percentage fee of any successful outcome in the future.[/FONT]

[FONT=&quot]If you feel the terms are unfair and / or you are dissatisfied with the delay you have experienced, you can complain about this to the CMC. If unresolved, you can bring your complaint to the Legal Ombudsman. Any agreement to the terms will clearly hold weight in our investigation, but we can conclude terms are unreasonable and direct remedies to resolve this if required.[/FONT]

Legal_Ombudsman · 14 October 2015 at 12:11PM

[FONT=&quot]Hi Brock[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thank you for your comment. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]We are working hard to provide feedback to the industry to improve working practices. We also continually make the Claims Management Regulator aware of any concerns we have if we identify that a CMC has failed to comply with the Conduct of Authorised Persons Rules. [/FONT]

Claims management company (CMC) complaints - ask the ombudsman your question

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