The Financial Ombudsman Service (FOS) has proposed the introduction of a £250 charge for each case submitted by a Claims Management Company (CMC). The move forms part of an ongoing consultation into how the service works with CMCs.
FOS is proposing to charge Claims Management Companies (CMCs) and other professional representatives up to £250 as a case fee for complaints brought against businesses. This fee would be reduced to £75 if the case outcome is in favour of the consumer.
If FOS does not uphold the complaint, the £250 fee collected from CMCs will be netted off against the case fee charged to business against whom the complaint was initially raised.
Earlier this year, the BVRLA supported calls for fees to be charged to CMCs. This second consultation, with detailed proposals of the fees to be charged, is a positive step in the right direction.
The consultation will close on 4 July 2024. If you would like to input into the BVRLA response, email [email protected] as soon as possible.
