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February 3, 2022

How and Why we brought the Fee Cap in early

On 1st February 2022 we announced a change to our fees. This is due to the FCA fee cap that applies to all Claims Management Companies from 1st March 2022 and means a CMC can charge 15-30%, depending on redress band but cannot charge more than £10,000.

Not only have we been able to do this ahead of the deadline but we are able to offer a fee cap lower than the recommended maximum.

So how and why did we bring it in early?

We have worked very hard the past 12 months to look at how we could streamline our processes, whilst still providing the same quality of service. This meant investing in new technologies and systems and looking at where we could make changes that wouldn’t affect our service level standards. It was a challenge but like most challenges we’ve come out the other side better for it.

Especially as we’ve stayed aligned to our core values of keeping our fees low but the quality of our service high!

 

Then we thought – why wait?

We have the new systems up and running if we adopt it now, it means more of our future clients will benefit from the fee cap.

That’s actually the main reason we have welcomed this move from the FCA as it ultimately means more of the compensation money goes to ALL CMC clients!

Hopefully, it will also eliminate those CMC’s who give our industry a bad name by charging unnecessarily high fees which have no justification to the service being provided.

At the very least it’s going to mean their new clients aren’t going to be so out of pocket now.

It’s also great news that the SRA plans to follow suit and introduce a fee cap for Solicitors operating in the claims management sector, though how many will remain in the game with a substantially reduced profit margin is going to be interesting to see.

Either way all this is good news for consumers.

 

So, what’s our new fee?

Even as a company who has had one of the lowest fees in the industry for years, we still wanted to do more than just comply.

We wanted to provide a simple flat rate fee, up to our fee cap, so it’s easier for new clients to understand how they will be charged. We also wanted to make it as affordable as we could.

So, our fee is still 15%+VAT on the total amount offered for a successful claim – for all redress bands – but is now capped at £7,500 + VAT.

Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.