In the summer budget of 2015, George Osborne first announced that a fee cap for claims management companies (CMCs) would be discussed. In November 2017, proposals were made that a 20% +VAT fee cap should be introduced for claims companies. This is in addition to other regulations about upfront fees and cancellations.
With the upcoming PPI deadline being heavily promoted by the Financial Conduct Authority (FCA), claims management companies are hoping to make as many claims as possible before August 2019. The introduction of a fee cap could have a dramatic effect on the profitability of CMCs.
Some companies charge well above the proposed fee cap, taking nearly 40% from successful claims.…Continue reading