12 Questions a Consumer Should Ask a Claims Management Company

Do you feel that you've been mis-sold paymentadministration fees/document handling fees in their
protection insurance, or loan insurance? Are youterms and conditions.
thinking about trying to reclaim your PPI premiums- Is the CMC regulated by the Ministry of Justice?
and interest paid? If you decide to do this through aYou should never work with a CMC who is not
professional claims management company, here areregulated by the MoJ. Handling claims without a MoJ
12 things to consider:licence is a criminal offence. You can check by looking
- Do I have to pay any upfront fees? You shouldat the MoJ's website and searching under the CMCs
never pay an upfront fee. The reason for this is veryname.
simple. If you do pay an upfront fee your interests- Will my claim be dealt with by the CMC? Some
and those of the Claims Management CompanyCMCs sell your claim on to other companies. It is
("CMC") are mis-aligned. A CMC has little incentive toimportant to check so that you know exactly who
work for you if they have already been paid a fee. Ifwill be dealing with your claim and how you can
no fee has been paid the interests of both partiescontact them.
are perfectly aligned because both parties will not- What is the qualification of the person who will be
receive any money unless the CMC wins your case.handling my claim? Some CMCs are using poorly
- How much are the fees? This should be no moretrained staff to process claims. Make sure that the
than 25% of the win amount + VAT. Be carefulstaff have adequate training and experience.
though, some CMCs apply their fee to the total value- Will I be kept fully up to date with the progress of
of the policy. If this is a current loan then it willmy claim? CMCs should let you know as soon as
include premiums that you have not yet paid. If youthey have received your instructions to act and any
sign up with a CMC that operates like this they couldloan documents you may have sent them. They
leave you out of pocket because you may not beshould also keep you fully updated with any
able to pay their fees from the compensation thatresponses from the lender.
they recover from you.- Will I be able to speak to someone about an offer
- Is the work done on a no-win no-fee basis? This isthat is made to me? You should be able to discuss
the basis on which the work should be done. Thisan offer that is made to you with a member of staff
means that there is no risk to you in making thewho has the relevant expertise and training to fully
claim because the fee is only payable if the CMC isexplain the offer to you. You should not be put
successful.under pressure to accept an offer that you don't
- Does the CMC have a minimum fee? Most will andunderstand or is not in your best interests.
this is reasonable. However, make sure that if the- Will I have to give my bank details to a CMC when
amount of your compensation were to fall below theI first speak to them? You should never have to do
minimum fee you would only be charged half of thethis. There's no reason for a CMC that operates on a
compensation you received. You don't want to beno-win no-fee basis to be asking for your bank
paying a minimum fee that is more than thedetails at the start of the process.
compensation that you've received and therefore be- If I'm unhappy with the service how will I be able
in a worse position than you were before signing upto cancel my contract with the CMC? You should
with the CMC.always write to a CMC to notify them that you want
- Are there any hidden charges? Make sure thatto cancel your contract. However, this contract will
there are no hidden charges in the terms andnot be cancelled until the CMC then confirms it with
conditions. Some CMCs hide charges foryou.