15 February 2016
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The Ministry of Justice has proposed capping fees charged by claims management companies handling mis-sold payment protection insurance claims, in a consultation launching today (15 February).
The proposals include capping maximum completion fees at 15% and limiting overall charges for claims worth more than £2000 to £300, according to reports.
Justice Minister Lord Faulks said: "Some claims management companies charge as much as 40% of the final compensation awarded for very little work.
"This has got to stop, and this government is taking action to make sure people aren't being taken advantage of by these greedy practices."
The government launched a call for evidence into the way CMCs are regulated on 2 October 2015.
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