The FCA has set out new rules for claims management companies (CMCs) to protect consumers against excessive charges. Some of the major changes include:
restricting the fees CMCs charge for managing claims about non-PPI financial products and services through a fee cap
require firms to provide consumers important information in the pre-contract stage
What it means for you
The FCA is focused on consumer outcomes and looking to become a more innovative, assertive and adaptive regulator.
It will annually monitor whether average fees by product type calculated from your regulatory return data and existing estimates of value from CP21/1 suggest significant excessive charging.