Cutting costs for consumers in financial claims

This consultation seeks views and further evidence in relation to proposals to:

• cap the maximum completion fee to 15% (including VAT) for bulk claims (such as mis-sold payment protection insurance claims) with a single lender and cap the overall charge for claims worth more than £2,000 in total to £300
• introduce a maximum ‘cancellation’ fee of £300 for bulk claims when a consumer cancels their contract with a claims management company after the initial 14 day ‘cooling off’ period
• ban CMCs from receiving or making any financial payment for referring or introducing a consumer to a third party in relation to a PPI or PBA claim
• ban any fees where no relationship is found between a consumer and a lender
• ban all upfront fees for all financial claims, where CMCs ask to be paid before any work is carried out
• cap the maximum completion fee to 25% (including VAT) of the final amount of compensation awarded in all other types of financial case