You can make a claim for compensation if you’ve been injured or have suffered a financial loss.
In this article we’ll explain how to file a claim for compensation on your own or, if you’re using a claims management company, make sure they’re approved, as well as your rights and obligations.
The Big Picture
If you want to file a compensation claim, you have two options:
Create your own point.
Make a claim through a private entity such as a lawyer or a claims management firm (CMC)
Make a claim on your own behalf
If you have lost money due to a mis-sold financial product, such as payment security insurance, you can seek reimbursement from financial firms for free (PPI).
You don’t need to use a CMC to make a point like this. Consumer organizations may provide free, unbiased guidance if you are unsure how to make the argument.
Free and unbiased advice
Many organizations provide free, unbiased guidance with no strings attached. You will retain all of the compensation if you file a good claim without using a CMC.
Assistance with financial laims
Support with mis-sold payment security insurance (PPI), endowment mortgages, and savings is available through the Money Advice Service.
Financial Ombudsman: assistance with most forms of financial grievances, as well as advice on how to file a lawsuit on your own.
Financial Services Compensation Scheme: provides assistance with compensation for such claims arising from the failure of a financial institution.
Assistance with injury claims, jobs, and housing issues
If you’re thinking about filing a claim for one of the following items, our experts at Consumer-Rights.org will help. You can create a free account on our site for advice.
Personal injury as a result of housing disrepair
If you go direct or use a CMC, you’ll need legal advice from a solicitor if you plan to take legal action to recover compensation for a personal injury.
You will almost always be given a “no win, no fee” arrangement if you are unable to obtain financial assistance (legal aid). If you agree to this and your argument is successful, you will still owe money.
Using a CMC: Your User Rights
Claims management companies (CMCs) are for-profit corporations. They can manage compensation requests for a fee in the following areas:
mis-sold financial goods, such as payment security insurance (PPI), personal injury, criminal injury, and industrial injury, and housing disrepair, such as abandoned, substandard housing
For CMCs, authorization is needed.
The Ministry of Justice’s Claims Management Regulator must approve any company that handles claims in England and Wales. Some organizations, such as solicitors, charities, and advisory firms, are exempt.
The fact that a business is approved does not imply that the Ministry of Justice endorses or recommends it.
Check the authorised business registry to see if a company is authorized.
CMCs and fees
For their expertise, CMCs charge a fee. Authorised CMCs must provide you with written material that includes information about the service they’re providing, their fees, and what you’ll be able to pay them.
You must sign a contract with the CMC (if you haven’t done so already, you haven’t made a contract). You have 14 days to terminate your contract without being paid after signing it.
If you give some money up front, you have 14 days to request a refund. You will be charged a fee if you cancel after the cooling off time has expired. This should be fair and represent the time and effort you put into your argument.
Companies also operate on a no-win, no-fee basis. They usually charge about 25% of the claim’s value plus VAT in PPI claims.
And if you don’t win, you can always have to pay the CMC for taxes or other costs.
What do you anticipate from a CMC?
CMCs must follow specific guidelines when dealing with customers in order to be approved.
They are not permitted to:
send you emails or texts (unless you’ve given us permission to do so)
Make marketing calls if you’ve told them you don’t want them or if you’ve registered your phone number with the Telephone Preference Service approach you in person use some sort of high-pressure sale, such as asking for decisions on the spot
They have to:
provide you with detailed written information on their services (including fees and costs) Before taking any money or filing a lawsuit, get your signature on the document.
tell you about ombudsman systems and other official ways to file a complaint
provide a 14-day cooling-off period during which you can cancel your contract without incurring any charges
If you’re dissatisfied with the service they offer, they can clearly clarify how to file a complaint.
Find out how to file a claim with a claims management firm if you’re not satisfied with the service you’ve received.
If your CMC isn’t valid anymore,
If a CMC’s license is suspended, revoked, or surrendered, it must cease providing services to new and current clients.
If your complaint has been forwarded to the Financial Ombudsman Service, you will be contacted as soon as possible.
If your claim has been forwarded to a solicitor, bank, or other financial services provider, contact them and request that they work with you directly in the future. Then write and the CMC to let them know what you’re up to.
Options for a refund
If you are unable to obtain a refund from the CMC, you have some choices depending on how you paid any fees.