Our updates on complaints about claims management companies include the number of enquiries and new cases we received, the number of complaints passed to an ombudsman for a final decision, and the proportion of complaints resolved in favour of customers.
Since 1 April 2019 we have been able to consider complaints about claims management companies (CMCs). We’ve published data about these complaints in line with the Financial Ombudsman Service’s established approach to quarterly complaints data for financial products and services. This means we’ve only published figures for claim activities where we’ve had 30 new and 30 resolved cases during in the reporting period. We’ve shown the number of new enquiries, new cases and ombudsman referrals, along with the percentage of cases upheld in favour of the consumer for the different claim activities undertaken by CMCs.
Reflecting the Legal Ombudsman’s previous caseload, customer service, fees and delays each account for approximately a third of complaints we’ve received about CMCs. Complaints involving PPI make up around 60% of our work. We’ve also heard from people who believe they’ve been scammed by a CMC – sometimes having paid upfront fees on the promise of a large PPI payout, or having been offered a gift card they haven’t received. The CMCs in question are often acting without authorisation, or are fraudulent “clones” of legitimate authorised firms. Complaints involving accident management are also growing as a proportion of our work. We’ll continue to share what we’re seeing with CMCs’ new regulator, the FCA.
|April 2019 - June 2019|
|Enquiries received*||New cases*||Ombudsman referrals||% of cases upheld|
|CMC PPI (Payment Protection Insurance)||262||117||17||43%|
|CMC Accidents at work||-||-||-||-|
|CMC Accident Management||-||-||-||-|
|CMC Consumer Credit||-||-||-||-|
|CMC Packaged Bank Accounts||-||-||-||-|
|CMC Short-term Lending||-||-||-||-|
|CMC Criminal Injury compensation||-||-||-||-|
|CMC Employment matters||-||-||-||-|
|CMC Holiday sickness||-||-||-||-|
|CMC Housing disrepair||-||-||-||-|
|CMC Lead referrals||-||-||-||-|
|CMC Road traffic accident||-||-||-||-|
|CMC Slips, trips or falls||-||-||-||-|
|CMC Specified Benefits||-||-||-||-|
|Other products and services||110||94||10||-|
* data does not include complaints transferred over from the Legal Ombudsman
Complaints data about individual claims management companies (CMCs)
The Financial Ombudsman Service’s established approach to six-monthly complaints data is to publish complaints data about individual businesses where we received at least 30 new cases and resolved at least 30 cases during the reporting period. The reporting periods are 1 January – 30 June (H1) and 1 July – 31 December (H2). We have only been able to consider complaints about claims management companies (CMCs), since 1 April 2019 - half way through the H1 2019 reporting period. No businesses met the threshold of 30 new and 30 resolved complaints during H1 2019.
View the full data set on our business complaints page.