Claims Management


Claims Management


In England and Wales, a claims management company is a business that offers claims management services to the public. Claims management services consist of advice or services in respect of claims for compensation, restitution, repayment or any other remedy for loss or damage, or in respect of some other obligation. Claims management services cover litigation or claims under regulation schemes or voluntary arrangements compensation.


The abolition of legal aid for personal injury claims, the introduction of conditional fee agreements and the appearance of and growth in claims management companies led to a rapid expansion of litigation from the mid-1990s. This led to public concern at the development of a ‘compensation culture’. The collapse of claims management company the Accident Group in 2003 increased disquiet with the system. Such companies used aggressive sales techniques and exaggerated claims, profiting from exorbitant commissions on after the event insurance policies. It was estimated that there were about 1,000 such companies in the UK in 2003. However, there was still evidence that many meritorious claims were discouraged by the difficulties and costs of litigation. These concerns, especially around the operation of conditional fee agreements, led to regulation of the market by Part 2 of the Compensation Act 2006.The activities regulated are those common to the market and which had caused concern:

• Advertising for cases.
• Advising a claimant in respect of claims.
• Certain large-scale referral activities.
• Investigating the circumstances, merits, or foundation of a claim, with a view to litigation.
• Representing a claimant to anybody, in writing or orally.

— in respect of claims:

• For personal injuries.
• Under the Criminal Injuries Compensation Scheme.
• For certain benefits arising from industrial injuries.
• In relation to employment law.
• For housing disrepair.
• In relation to Financial products or services.


In England and Wales, as of 23 April 2007, an individual or a corporation may not, unless exempt or otherwise in receipt of a waiver, provide claims management services by way of business unless authorised by the Claims Management Services Regulator. It is a crime for an unauthorised person to provide or offer claims management services, or to pretend to be authorised. Offenders are punishable, on summary conviction, by a fine of up to level 5 on the standard scale or 51 weeks' imprisonment. If convicted on indictment in the Crown Court, offenders can be sentenced to an unlimited fine or two years' imprisonment. Where a corporate crime is committed, the offender can only be fined and not imprisoned. The claims regulator also covers the processing and evaluation of complaints against claims management companies.
Solicitors, barristers, advocates, and some other lawyers are exempt, as are:

• Persons regulated by the Financial Services and Markets Act 2000.
• Charities and not for profit bodies.
• Motor Insurance Bureau.
• Medical Protection Society, Medical Defence Union, and Medical and Dental Defence Union of Scotland; and
• Trade Unions.

Incidental referrals to lawyers are also exempt as are services in respect of counter claims or claims for contribution or indemnity.

Claim Management Services Regulator

The Claims Management Services Regulator was created by section 11 of the Compensation Act 2006. The post of Regulator is occupied by the Secretary of State of Justice to authorise and regulate claims management companies and:
• Set and monitor standards of competence and professional conduct.
• Promote good practice, in particular as to the provision of information about charges and other matters to users.
• Promote practices likely to facilitate competition.
• Ensure that arrangements are made for the protection of users, including complaints handling.
The rules and procedure for authorisation are defined in the Compensation (Claims Management Services) Regulations 2006. The Regulator may investigate unauthorised trading and seek an injunction to prevent it or bring a criminal prosecution. It is a crime to obstruct the Regulator, punishable on summary conviction by a fine of up to level 5 on the standard scale.
A person may appeal a decision of the Regulator about authorisation to the Claims Management Services Tribunal and there is a further route of appeal to the Court of Appeal.
When section 161 of the Legal Services Act 2007 comes into force, claims management services and the Regulator will fall under the supervision of the Office for Legal Complaints and its ombudsman scheme. It has been suggested that the first complaints will not be handled until 2010.

Claims Management Service Tribunal

The Claims Management Services Tribunal was created by section 12 of the Compensation Act 2006 to hear.

• appeals from persons against a decision of the Regulator about authorisation; and
• after section 13(2) of the 2006 Act comes into force, references from the Claims Management Services Regulator in respect of complaints or questions about the professional conduct of a claims management company.

In January 2010, the Tribunal was abolished, and its functions transferred to the First-tier Tribunal.

Transfer of Regulation to FCA

On 1 April 2019, regulation of claims management companies was transferred to the Financial Conduct Authority. Claims management companies previously regulated by the Claims Management Services Regulator, and that wished to continue trading, had to register for temporary permission by 31 March 2019.

Claims that we cover

There are various claims that we cover for our clients:

• Payment Protection Insurance (PPI) Finished in August 2019
• Single Premium Mortgage Payment Protection Insurance (SP MPPI)
• Packaged Bank Accounts (PBA)
• Mortgages (Miss selling, Miss calculation, Advice)

Payment Protection Insurance (PPI)

The FCA fixed Thursday 29 August 2019 as the final date for making a PPI reclaim – your complaint must have been submitted and (in most cases) received by the firm you're complaining to on or by this day; miss it, and the complaint won't be considered unless exceptional circumstances.

Single Premium Mortgage Payment Protection Insurance (SP MPPI)

These were usually sold along side your Mortgage or even paid for and added to your new Mortgage. The policy was an Accident, Sickness & Unemployment (ASU) policy that protected your Mortgage should either of the ASU occur.

There was nothing wrong with the policy but for the options provided to pay for it.

The FCA decided that the client should have been given the choice to pay for these policies by monthly payment.

As this was not offered, they deemed the policies miss sold.

Making a Claim

CPL do NOT charge any upfront fees on Claim management Activities

Operating in a ‘No Win. No Fee’ basis, CPL charge a success fee of 20% + vat on the amount recovered. If your details for a Mortgage Claim are passed to a 3rd Party to investigate, they may charge 35% on the amount recovered.

The Client is not required to use the services of CPL to make any claim

It is possible for any Client to present their claim themselves for free, either to the persons against whom they wish to complain or to the relevant statutory ombudsman or statutory compensation scheme.

Find out more about making a claim by clicking on ‘Quote’ button below, complete your contact details and we will give you a call.


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Commitments Protection Limited is Registered in England and Wales CRN 04450200
Regulated and Authorised by the Financial Conduct Authority FRN 307800
Sales Office: Gibson House, Ermine Business Park, Huntingdon, PE29 6XU
Administration Office: The Quadrant, 49 Calthorpe Road,Birmingham, B15 1TH
Tel: 0333 202 7121 Web: Email: