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

Legal_Ombudsman · 22 September 2015 at 9:11AM

Hi Alpine Star,

The CMR are correct in that flight delay compensation is not an area they regulate, therefore there is no requirement for companies doing this to be authorised.

However, we are not bound by what the CMR class as a regulated claims management activity. If a CMC is authorised by the CMR, then we are able to consider any claims management activity they undertake, whether it’s a ‘regulated activity or not. This includes flight delays, as well as areas such as accident management, council tax refunds etc.

Unfortunately, if the CMC is not authorised by the CMR, then they also fall outside of our jurisdiction. Just because a CMC deals with unregulated activities it does not mean that they are not authorised, so we are able to assist in some circumstances. We can also look at previously authorised CMCs, where the service they provided was at a time they were authorised. To check a CMCs authorisation status, you can use this link:
https://www.claimsregulation.gov.uk/search.aspx

Legal_Ombudsman · 22 September 2015 at 10:12AM

dunstonh wrote: »

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).

[FONT=&quot]Hi dunstonh[/FONT]

[FONT=&quot]Glad we can help and engage in useful conversation on here! You may be aware that for the Legal jurisdiction we have frequently published thematic reviews which look into the standard practice of lawyers and highlighted where we think practices need to change. However for this change to happen across the board it is important that regulation is used to deal with issues such as this.[/FONT]

[FONT=&quot]It may interest you to know that ...[/FONT]

[FONT=&quot]In the Summer Budget – announced by Chancellor George Osborne on 8 July, he stated:[/FONT]

[FONT=&quot]“There is a case for reform of the fees that CMCs charge consumers, particularly in those instances where consumer complaints fall within the remit of the Financial Ombudsman Service. Therefore, the government will bring forward proposals for the introduction of a cap on the charges that CMCs can apply to their customers, and will consult on how this will work in practice[/FONT][FONT=&quot]” [Summer Budget 2015 – 1.207][/FONT]

[FONT=&quot]This is work the CMR will take forward and we look forward to feeding into this consultation.[/FONT]

[FONT=&quot]You can find the Summer Budget 2015 document at this link: https://www.gov.uk/government/publications/summer-budget-2015[/FONT]

Alpine_Star · 23 September 2015 at 6:00AM

What are LeO's uphold rates? It's not really clear from the available data.

Legal_Ombudsman · 24 September 2015 at 4:46PM

[FONT=&quot]Hello Alpine Star, [/FONT]
[FONT=&quot]
We will be publishing our six month data for our claims management jurisdiction this week, we do not publish our uphold rates and instead focus on information around remedies awarded, percentage of closed cases by informal resolution and similar measurements. Thanks for your comments on here, sorry we can’t help you further on this issue, if you would like any more information then please contact us directly or make a freedom of information request. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Many thanks[/FONT]

esmerellda · 24 September 2015 at 10:43PM

Today then

http://www.legalombudsman.org.uk/the-results-are-in-latest-cmc-data/

Get the vital statistics regarding our first six months of dealing with complaints
about claims management companies (CMCs) from our downloadable infographic.

2015-09-24-22_39_02-CMC-August-infographics.pdf-Adobe-Acrobat-Reader-DC.png

2015-09-24-22_39_02-CMC-August-infographics.pdf-Adobe-Acrobat-Reader-DC.png

not massively informative really xx

esmerellda · 24 September 2015 at 11:01PM

Ahh and three case studies

Alpine_Star · 25 September 2015 at 7:13AM

Legal_Ombudsman wrote: »

[FONT=&quot]Hello Alpine Star, [/FONT]
[FONT=&quot]
We will be publishing our six month data for our claims management jurisdiction this week, we do not publish our uphold rates and instead focus on information around remedies awarded, percentage of closed cases by informal resolution and similar measurements. Thanks for your comments on here, sorry we can’t help you further on this issue, if you would like any more information then please contact us directly or make a freedom of information request. [/FONT]

[FONT=&quot]Many thanks[/FONT]

Thanks.

Are the 56% closed cases resolved by informal resolution a percentage of the 648 cases you accepted?

Legal_Ombudsman · 25 September 2015 at 9:46AM

Hi Alpine Star,

Out of the 478 cases that we resolved, 56% were by informal resolution. Please call us if you would like any more information.

widdler · 1 October 2015 at 1:43AM

Hi I recently requested the services of a CMC solely on the basis that I have no time to trace through my history to find the 'basic' details. I work away a lot and lecture so cannot be making phone calls in the daytime.

I was unimpressed when they harassed me for all the technical information they claimed I wouldn't actually need and so some of my loans have been left unclaimed. I have noticed how their recent marketing material claims they will 'guide you through it' instead of 'taking care of it all' as they used to claim.

After the few claims were made, I was contacted a couple of times and asked to call back. Every time I did I was told they were experiencing high call volume, and so was asked to leave a message and they would call back - I couldn't even hold on the line. A few times I left messages and they never returned my calls.

After a couple of my claims came back unsuccessful I finally had success with one on my bank overdraft (a claim that the CMC devised as I had no idea). This claim was to the value of 1 British pound and I had a letter from the CMC saying they will waive their fee due to the low value of the claim.

I then received a response from my credit card, which was a claim I truly felt I was owed. This came back unsuccessful also and so through all of the CMC work I got back 1 pound.

I felt the need to appeal the Credit card claim and so got involved myself making all the phone call and providing the evidence and reasons why. Through my appeal I was awarded my claim of approximately 4.4k.

Naturally now I have been awarded a significant value my phone is ringing again, I am getting text messages and letters from the CMC wanting their cut - I am happy to part with it as I knew it was part of the process..

However I do feel as if the CMC involvement coming back unsuccessful and myself having to appeal and get involved directly kinda suggests that the CMC didn't earn it... I might add that my appeal was all done directly with the CC company and I never discussed the initial failed claim result and appealing with the CMC.

Again, I am not trying to swindle out of paying, I'll gladly do so.. but I am just wondering if I have a right to complain??

Thanks for your time.

dunstonh · 1 October 2015 at 9:08AM

However I do feel as if the CMC involvement coming back unsuccessful and myself having to appeal and get involved directly kinda suggests that the CMC didn't earn it.

Very few of them earn it. Most just put the form in the envelope and post it to the free of charge complaints address you could have sent it to yourself. That is the extent of it.

but I am just wondering if I have a right to complain??

You have a right to complain about anything you like. However, you got what you paid for. The problem is that your expectation of what you were buying was wrong. That is unlikely to be a successful complaint.

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

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