Majority of FSCS claims submitted by CMCs

Industry News | 05/07/19

The Financial Services Compensation Scheme has pledged to encourage consumers to access its service directly as it confirmed almost three quarters of the claims it receives are made by claims management companies.

Speaking at a Treasury committee evidence session on July 3, Jimmy Barber, chief operating officer at the FSCS, said about 70 per cent of the claims that reach the lifeboat scheme are submitted by CMCs. This is despite the service being free to use directly for consumers and CMCs often charing hefty fees of about 30 per cent.

Source: FT Adviser