Summary
This policy statement from the Financial Ombudsman Service outlines new rules for charging case fees to claims management companies (CMCs) and other professional representatives referring complaints. The initiative, under regulations from HM Treasury, seeks to create a fairer funding model by distributing costs more equitably between service users and financial firms while encouraging better-prepared complaint submissions.
Key Take Aways
New Case Fee: A maximum fee of £250 applies to cases referred by CMCs, with a £75 minimum fee for all eligible cases exceeding the free case threshold.
Annual Free Cases: CMCs are allowed up to ten free cases per financial year.
Outcome-based Credit: CMCs receive a £175 credit if cases are upheld or resolved favorably for the complainant.
Market Impact: The new regime aims to improve service efficiency without significantly disrupting CMC operations or consumer access to complaint resolution.
Stakeholder Feedback: The proposal incorporated ext...
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