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

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  • Legal_Ombudsman
    Legal_Ombudsman Posts: 79 Organisation Representative
    Hi Alpine Star,

    Thanks for your message. For clarity the Scheme Rule that is being referred to is 5.37(a) and states:

    In determining what is fair and reasonable, the ombudsman will take into account (but is not bound by) what decision a court may make.

    A copy of our Scheme Rules can be found on our website www.legalombudsman.org.uk

    This is the approach we take when considering the appropriate remedy in an individual case. It is not a requirement for a court to rule that a contract term is blatantly unfair before we can direct an appropriate remedy, we only need to be satisfied that a court would consider that term blatantly unfair. However, you are correct in saying that we may also refer a complaint to court if we consider that to be necessary.

    To give you an example, if a CMC were to have a term that required an invoice to be paid within 48 hours of the date it was posted (not received), and applied interest penalties if cleared funds were not received by the CMC within that time period, we would consider that term to be blatantly unfair – we would expect a customer to be given a reasonable time to pay an invoice before any recovery action was considered/taken. It would be reasonable of us to make such a decision without the need to refer to a court for them to make a ruling as to whether it breached any unfair contract terms regulations.

    As we consider each complaint on its own merits, this is not the forum to discuss individual circumstances and/or contract terms. If you have a specific claim that you wish us to consider, please call us on 0300 555 0333.
    Official Company Representative
    I am the official organisation representative of the Legal Ombudsman service. MSE has given permission for me to post. You can see my name on the organisations with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to [email protected]"
  • As we consider each complaint on its own merits, this is not the forum to discuss individual circumstances and/or contract terms. If you have a specific claim that you wish us to consider, please call us on 0300 555 0333.


    With respect we're not discussing individual circumstances or any particular contract term.

    Rather, we're discussing how the Scheme Rules operate and the factors LeO takes account of when considering the merits of a complaint, in general terms. Something that I would have thought was part of your function.

    I fully appreciate that you can't discuss individual complaints here but if you or anyone reading this is interested in knowing more about the case referred to in my first post see here from post #15 http://www.legalbeagles.info/forums/showthread.php?44156-having-problems-with-Bank-Smart
  • rucs
    rucs Posts: 5 Forumite
    edited 21 September 2015 at 2:38PM
    edited for privacy reasons
  • Flight compensation claims management isn't an activity that is covered by the Claims Management Regulator and as such falls outside the jurisdiction of the Legal Ombudsman.
  • Legal_Ombudsman
    Legal_Ombudsman Posts: 79 Organisation Representative
    Hi rucs,

    Flight delay compensation is certainly something that falls within our jurisdiction to consider, as we are able to consider any claims management activity undertaken by a regulated claims management company. However, you will need to complain to the company before we are able to investigate the matter.

    If you would like to contact us in the first instance on 0300 555 0333, we can discuss your specific complaint with you. We can also forward your complaint to the CMC on your behalf.
    Official Company Representative
    I am the official organisation representative of the Legal Ombudsman service. MSE has given permission for me to post. You can see my name on the organisations with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to [email protected]"
  • rucs
    rucs Posts: 5 Forumite
    Hi rucs,

    Flight delay compensation is certainly something that falls within our jurisdiction to consider, as we are able to consider any claims management activity undertaken by a regulated claims management company. However, you will need to complain to the company before we are able to investigate the matter.

    If you would like to contact us in the first instance on 0300 555 0333, we can discuss your specific complaint with you. We can also forward your complaint to the CMC on your behalf.

    Thank you very much, I will call the number you quoted.
  • rucs
    rucs Posts: 5 Forumite
    Flight compensation claims management isn't an activity that is covered by the Claims Management Regulator and as such falls outside the jurisdiction of the Legal Ombudsman.

    Thanks, but you're wrong. Please see reply above.
  • Alpine_Star
    Alpine_Star Posts: 1,354
    First Anniversary Combo Breaker First Post
    Forumite
    edited 21 September 2015 at 5:08PM
    Hi rucs,

    Flight delay compensation is certainly something that falls within our jurisdiction to consider, as we are able to consider any claims management activity undertaken by a regulated claims management company. However, you will need to complain to the company before we are able to investigate the matter.


    Are you absolutely sure about this?

    I recently asked this very question to a senior claims management officer at the CMR unit at Burton on Trent when I reported a company conducting what I had assumed to be an authorized activity (delayed flight claims). This was the response:

    ''It reads like it’s the work of a CMC but delayed flight compensation is not an area that is regulated by ourselves so there is no requirement for authorization''.

    Given that flight delay CMCs aren't regulated complaints about them won't fall within your jurisdiction.
  • dunstonh
    dunstonh Posts: 115,904
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    Forumite
    Alpine Star, did you sent it to the UK Legal ombudsman as tehre is American spelling in there ;)

    I would just like to thank the Legal ombudsman for having someone posting on this boards and engaging in discussion. It is a shame that the LO is soft touch and doesnt work in the same way as the FOS (who look at fairness of £25 fees whereas CMCs can get tens of thousands of pounds without a blink of an eye).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Alpine Star, did you sent it to the UK Legal ombudsman as tehre is American spelling in there ;)


    No, Claims Management Regulator. It's an annoying default American spelling glitch when I copy & paste from an e-mail to a forum post.
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