Using claims management companies

Claims management companies (CMCs) handle a range of claims, including personal injury, financial services and employment matters. Find out what to expect if you decide to use one or what your other options are. 

Claims management companies (CMCs) are commercial businesses or individuals that handle certain types of claims, including:

  • financial services and products, eg PPI, payday loans, claims under Section 75 of the Consumer Credit Act
  • personal injury
  • employment matters, eg unfair dismissal claims
  • criminal injury
  • certain cases of housing disrepair
  • specified benefits

Free help with claims

You don't have to use a claims management company to claim compensation. 

It's free to claim compensation from financial companies yourself if you've been mis-sold a financial product. 

The first step is to contact your provider. However, if you're not happy with the firm's response, the Financial Ombudsman Service might be able to help you.

Consumer organisations may also be able to advise and help you with making a free claim, for example, the Money Advice Service or the Citizens Advice consumer service.

Find out more about how to claim compensation if a firm fails.

Finding a claims management company

If you do want to use a claims management company, you should check the Financial Services Register to ensure it's authorised by us.

If you use a CMC that is not approved by us, you will not have access to the Financial Ombudsman Service (FOS) if things go wrong. 

What to expect from a claims management company

CMCs that are authorised by us must follow our rules. This means they must:

  • provide you with a 1-page summary of all the key information, before you sign a contract
  • supply a detailed breakdown of how they will charge you, including examples. This may be called a 'cost illustration'
  • offer a 14-day cooling off period when you can cancel your contract without being charged
  • update you as to key developments with your claim, for example, if the lender has requested more documents
  • tell you clearly about ombudsman schemes or any other official ways you can claim
  • clearly explain how to complain if you’re unhappy with the service they provide

They must not:

  • send you emails or texts (unless you’ve agreed to receive them)
  • make marketing calls to you unless you have specifically told them that you want to receive them 
  • approach you in person
  • use any form of high-pressure selling such as asking for on-the-spot decisions
  • charge you more than 20% plus VAT of your claim, if you're making a PPI claim

Unauthorised claims management companies

Unauthorised firms are sometimes involved in scams, such as PPI refund scams and pension claims.

If you're contacted by a CMC you believe isn't authorised, please contact us and we will investigate the firm. You can find out whether a firm is authorised by searching the FS Register.

Find out more about protecting yourself against scams and avoiding unauthorised firms.

Complain about a claims management company

If you're unhappy with the way a claims management company has handled your case, find out how to complain

The Financial Ombudsman Service (FOS) manages complaints for financial services, including claims management.

Page updates

22/09/2020: Information changed Editorial and style amendments.