It is likely that at some point, you could be involved in a complaints claim process. These complaints can range from a delayed or cancelled holiday flight to something as complex as financial mis-selling. This is where claims management companies or CMC can come in useful.
Although making a claim is not always particularly difficult to handle, you may be tempted to get expert help from a claims management company. These companies are regulated by the Financial Conduct Authority (FCA) and mediate between the claimant and the companies with a complaint made against them.
Claims management companies are beneficial as they take care of all the administrative tasks involved in the claims process and deal with whatever company or body you are claiming against. Knowing your claim is being taken care of is important for providing peace of mind and it means you don’t have to spend your own time attempting to fight your corner.
What Is the FCA?
The Financial Conduct Authority is aware that complaints procedures and financial markets can be an overwhelming process to navigate. This is why the FAC ensure consumers are treated fairly and receive the deal they deserve.
The FCA works by regulating the conduct of over 60,000 financial markets, services and firms all within the UK. It is an independent public body funded by the fees charged to the businesses that it regulates.
Should I Use a Claims Management Company?
Taking care of your complaint can be a daunting task — and a time-consuming one. There can be a great deal of jargon to understand and research required to successfully carry out your claim. Therefore, if you are looking for professional help, peace of mind and maximum convenience, you may wish to find a claims management company happy to take on your case.
Claims management companies are firms set up specifically to deal with your complaints. They have claims management software that allows them to manage high numbers of complaints and experienced staff members who can offer advice and guide you through the whole process. A good CMC can be an invaluable asset when making a claim.
Claims management companies can be a great help, though this expertise doesn’t come for free. They can charge around 20% of the value of the original claim and potentially a flat fee on top of that, depending on the company. It is therefore important to decide whether you prefer to handle the claim yourself or end up potentially paying out a large sum of money.
So, when looking for a claims management company, it is a good idea to check to see if they are registered on the financial services register so you can check that they are authorised.
What Can You Expect from Your Claims Management Company?
When dealing with claims management companies, it is useful to know they must adhere to certain regulations. This means your CMC must:
- Offer you a one-page summary of important information before you commit to signing the contract.
- Provide you with a detailed breakdown of the charges. This will help you avoid any nasty surprises.
- Give you 14 days after cancelling your contract, during which you will not be charged.
- Keep you updated with how your claim is progressing.
- Explain the complaints process if you are not happy with the service your CMC provides.
Your complaints management company must not:
- Send unsolicited emails or texts.
- Target you with unsolicited marketing calls.
- Contact you in person.
- Pressure you into purchases or decisions.
- Take more than 20% (plus VAT) of your claim when making a PPI claim.
Can You Complain About a Claims Management Company?
Although you can generally expect a satisfactory service from your claims management company if you do your research beforehand, you can still find yourself unhappy with the service you have received. What do you do if this is the case?
If you do not receive a satisfactory response after raising your complaint with your claims management service, you are entitled to contact the Financial Ombudsman. This is a free service set up to settle disputes between customers and financial service companies.
So, there you have it. If you feel as though you have the right to make a claim, you might want to explore your options to determine the best course of action for you. Claims management companies offer an important service and can provide you with just the support needed to succeed with your claim.
