FOS consults on CMC fees

Following the publication of Treasury’s draft legislation, FOS has announced a consultation on proposals to charge Claims Management Companies and other professional representatives up to £250 to lodge a case. The service, which will remain free for those bringing cases directly, will be reduced to £75 in the case of a successful outcome for the consumer.

As with firms, professional representatives will have an allowance of three cases per year free of charge before they pay the new fee. FOS has cited that over the last two years, 20% of cases have been brought by professional representatives. Previously, it was felt that these cases were gaining financially without contributing to running costs, without incentive to bring meritorious claims.

The consultation closes on 4 July 2024.

Harry Wells