Using claims management companies

Claims management companies (CMCs) handle a range of claims for compensation or other benefits. Find out what to expect if you decide to use one.

First published: 07/03/2019 Last updated: 20/03/2023 See all updates

CMCs are firms or individuals that can help you make a claim, but they’ll charge you a fee for the service.

For example, if you think you've been mis-sold a financial product or service, you could use a CMC to help you complain. Or, if a financial firm goes out of business, a CMC could act on your behalf to help you claim compensation.

You don’t need to use a CMC to make a claim, it’s free and simple to do it yourself. If you’re concerned about the process, you can also get free guidance from MoneyHelper. Find out more about making a claim yourself.


If you choose to use a CMC, they may:

  • investigate your claim and represent you
  • help you deal with any paperwork
  • put you in touch with lawyers, if needed 

CMCs should also be able to let you know the likelihood of your claim being successful. If it’s unlikely to succeed, they should tell you.

Some CMCs may only act as lead generators. A lead generator identifies any possible claims you may be able to make, and then refers you to other CMCs or lawyers who may be able to help you.  

Make sure the CMC is authorised

CMCs must be authorised by us if they provide services for claims concerning:

  • financial services and products
  • personal injury
  • employment matters, eg unfair dismissal
  • criminal injury
  • housing disrepair
  • certain industrial injuries benefits

But some CMCs, or other firms that provide claims management services, are regulated by a legal regulator instead. The legal regulators are:

  • the Solicitors Regulation Authority (SRA)
  • The Bar Standards Board
  • CILEx Regulation
  • the Law Society of Scotland

If you use a CMC, make sure they’re authorised by us, or one of the other legal regulators by searching the:

CMCs might provide services on other types of claims (such as aviation), but those services aren't regulated by us. If you're contacted by a CMC that you believe isn't authorised by us or the legal regulators, please contact us.

Fees for using CMCs

It’s important to remember that, if you use a CMC, you’ll need to pay a fee. To make sure you get fair value for money, we introduced a cap to the fees you can be charged for financial services claims. 

For claims started on or after 1 March 2022, the maximum fee you pay will depend on the value of your claim. 

How much you're awarded Maximum % you can be charged Maximum fee you can be charged
£1 to £1,499 30% £420
£1,500 to £9,999 28% £2,500
£10,000 to £24,999 25%


£25,000 to £49,999 20% £7,500
£50,000+ 15% £10,000

If a lead generator is involved in your claim, they may also be paid a fee by your CMC or lawyer for passing on your case.

Watch: Using CMCs

Find out about financial services claims and using claims management companies.

Making a claim yourself

If you want to make a complaint or claim compensation yourself, you’ll have to follow the right process. If you’re concerned, organisations like MoneyHelper may be able to help you.

Read more about:

If your claim is about a pension, The Pensions Ombudsman may be able to help. You can find more information about how to get compensation for a pension problem from MoneyHelper.

Making other types of claims yourself 

What to expect if you decide to use a CMC

CMCs that are authorised by us must follow our rules. 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 during which you can cancel your contract without being charged 
  • update you on key developments with your claim 
  • tell you clearly about schemes such as the Financial Ombudsman Service or the FSCS, or any other official ways you can claim 
  • ask you to confirm that you don’t want to make a claim by yourself for free, if you’re making a financial services 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’ve specifically agreed 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 which you started after 10 July 2018 

Please check the individual legal regulators’ websites for information on what rules CMCs authorised by them must follow. 

Complaining about a CMC

If a CMC is authorised by us and you're unhappy with how it’s handled your case, find out how to complain.

If the firm is regulated by a legal regulator, visit the relevant website for information about making a complaint.

Page updates

: Editorial amendment Page update as part of the website refresh
: Information changed Content updated to after publication of PS21/18
: Link changed Money Advice Service updated to MoneyHelper
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: Information changed Editorial and style amendments.