MOJ plan to slash CMC fees

Alpine_Star

https://consult.justice.gov.uk/digital-communications/cutting-costs-for-consumers-finanical-claims

• Cap the maximum completion fee to 15% (Inc. 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% (Inc. VAT) of the final amount of compensation awarded in all other types of financial case.

[Deleted User]

A consultation about proposals.

Even if these were instigated now it would be like shutting the stable door after the horse has bolted.

It's long before time..


Already posted by Fermi;
https://forums.moneysavingexpert.com/discussion/5412771

Alpine_Star

That bloke's way too quick for me...

[Deleted User]

Alpine_Star wrote: »

That bloke's way too quick for me...

Pity the MOJ doesn't act so fast...:(

[Deleted User]

dunstonh wrote: »

Unfortunately, its not on all financial claims. Just packaged bank accounts and PPI.

PPI is in its later years and packaged bank accounts have a really low success rate at the FOS (13% currently).

Caps will not be set on other areas (which are often abused even more by dodgy CMCs)

Good points. There will be no retrospective clawing back of the exorbitant fees already charged, of course.

[Deleted User]

fermi wrote: »

These things always have a habit of being too little too late, or out of scope.

That goes without saying, unfortunately.

I also wonder how long before the proposals are implemented.