Using claims management companies

The FCA is the regulator for claims management companies (CMCs) in England, Wales and Scotland, including those handling personal injury and financial services claims. The Financial Ombudsman Service has taken over complaints about CMCs.

All claims management companies in England, Scotland Wales must be authorised by us to operate legally.

Regulated claims management companies are commercial businesses or individuals that handle certain types of claim. The types of claim relate to:

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

Free help with claims

You don't have to use a claims management company. It's free to claim compensation from financial companies yourself if you have been mis-sold a financial product. The first step is to contact your provider. 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 help you with making a free claim, eg the Money Advice Service or the Citizens Advice consumer service.

Find a claims management company

You should check our Register to ensure a CMC is authorised and approved by us.

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

Unauthorised firms are also sometimes involved in scams. Find out how to protect yourself from PPI refund scams and more about avoiding unauthorised firms.

If you are contacted by a CMC you believe isn't authorised, please contact us and we will investigate the firm.

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 are making a PPI claim

Complain about a claims management company

See our information on how to complain. The Financial Ombudsman Service (FOS) manages complaints for financial services, including claims management.