The MoJ has considered responses to its May 2014
consultation document “The Legal Ombudsman and complaints about claims
management companies”.
From 28th January 2015 the Legal Ombudsman will
offer consumers a free route of redress if they have a complaint about a
regulated claims management company (CMC). The fee structure has been designed
to make the scheme wholly self –financing and is based on the turnover figure
of the CMCs. Annual charges are shown
below however pro-rata charges will apply for the initial period until 1
April.
Where the annual
turnover of an authorised CMC is £163,636 or less, then the amount payable
will be a fixed fee of: Turnover band £
|
Annual
Fee
|
Up to £24,999.99
|
From £75 - £250
|
£25,000 – £74,999.99
|
£340
|
£75,000 – £163,636
|
£540
|
Where the
annual turnover of an authorised CMC exceeds £163,636 businesses shall pay an
amount equal to 0.33% of annual turnover up to £1 million, plus 0.22% of annual
turnover between
£1 million
and £5 million, plus 0.18% of annual turnover above £5 million.
Fees are capped at £40,000.
The MoJ estimates that the Legal Ombudsman scheme will
consider 3,000 complaints from consumers a year. The Claims Standards regulator
will continue to deal with complaints about unregulated businesses and to
investigate misconduct.
Lesley Attu
Product Development Manager
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