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From April 1, the Legal Ombudsman will transfer its CMC service to Financial Ombudsman who will have a dedicated team situated in Coventry to handle CMC complaints.
CLAIMS MANAGEMENT OMBUDSMAN ( part of FOS )
From 1 April 2019, we take on responsibility for complaints about claims management companies (CMCs) and we will be able to help resolve individual disputes between CMCs and their customers, as an alternative to the courts.
We’ll be able to deal with complaints against CMCs about events that happened on or after 1 April 2019, if the client or the CMC is in England, Scotland or Wales. This widens the current scope of ombudsman schemes in the CMC sector. We might also be able to help with other complaints if the CMC has joined our voluntary jurisdiction. We’ll also be able to take on complaints about events that happened before 1 April, but weren’t raised with the Legal Ombudsman before that date - as long as the person bringing the complaint would have been able to do so under the Legal Ombudsman scheme rules.
We’ll be able to look into complaints about the service received from a CMC, for example:
If you’re a consumer who wants to make a complaint about a claims management company, from 1 April 2019 you can call our consumer helpline:
0800 023 4 567
FACT SHEET FROM THE LEO
Changes to the regulation of Claims Management Companies
CLAIMS MANAGEMENT OMBUDSMAN ( part of FOS )
From 1 April 2019, we take on responsibility for complaints about claims management companies (CMCs) and we will be able to help resolve individual disputes between CMCs and their customers, as an alternative to the courts.
We’ll be able to deal with complaints against CMCs about events that happened on or after 1 April 2019, if the client or the CMC is in England, Scotland or Wales. This widens the current scope of ombudsman schemes in the CMC sector. We might also be able to help with other complaints if the CMC has joined our voluntary jurisdiction. We’ll also be able to take on complaints about events that happened before 1 April, but weren’t raised with the Legal Ombudsman before that date - as long as the person bringing the complaint would have been able to do so under the Legal Ombudsman scheme rules.
We’ll be able to look into complaints about the service received from a CMC, for example:
- a CMC didn’t clearly explain:
- what fees would be charge them before they entered into a contract with you
- any changes to the fees during the course of a contract with them
- didn’t keep them informed about the progress of their claim
- caused unnecessary delays to the progress of their claim
- provided inappropriate or incorrect claims advice
- failed to follow their instructions
- consistently didn’t reply when they contacted you
- passed their claim onto another CMC without telling them
- repeatedly contacted them without their consent
If you’re a consumer who wants to make a complaint about a claims management company, from 1 April 2019 you can call our consumer helpline:
0800 023 4 567
Changes to the regulation of Claims Management Companies
Parliament has decided to transfer the regulation of Claims Management Companies to the Financial Conduct Authority. This transfer is due to take place on 1 April 2019.
The Act of Parliament dealing with this transfer, the Financial Guidance and Claims Act 2018, was passed into law on 10 May 2018.
How will these changes affect my complaint?
As part of the transfer, the responsibility for dealing with complaints about Claims Management Companies will move from the Legal Ombudsman to the Financial Ombudsman Service. Everyone involved is working towards a transfer date of 1 April 2019, but we will let you know if this changes.
We will do everything we can to conclude your complaint as soon as possible. However you need to be aware that, if your complaint has not been concluded by 1 April 2019, it will be transferred to the Financial Ombudsman Service
We will try to make this transfer as smooth as possible.
What this means to you:
If your complaint has not been concluded by 1 April 2019, we will transfer it to the Financial Ombudsman Service. The power to deal with Claims Management Companies complaints will also transfer to the Financial Ombudsman Service, and they will continue the investigation and make a decision following our Scheme Rules (a copy of which can be found on our website).
If you do not want your complaint to transfer to the Financial Ombudsman Service, please let us know. This will mean that your complaint will be treated as ‘withdrawn’ and will be closed. Please be aware that you will not be able to raise the same complaint with the Financial Ombudsman Service at a later date.
If, after 1 April 2019, you wish to complain about the service provided by a Claims Management Company, you will need to take your complaint directly to the Financial Ombudsman Service.
If you receive a final decision, but the Claims Management Company does not do what the ombudsman told them to do, we will only be able to enforce this decision for you if we started court proceedings before 1 April 2019. You are still able to enforce the final decision yourself but you may wish to take advice from your local Citizens Advice or similar organisation.
The Act of Parliament dealing with this transfer, the Financial Guidance and Claims Act 2018, was passed into law on 10 May 2018.
How will these changes affect my complaint?
As part of the transfer, the responsibility for dealing with complaints about Claims Management Companies will move from the Legal Ombudsman to the Financial Ombudsman Service. Everyone involved is working towards a transfer date of 1 April 2019, but we will let you know if this changes.
We will do everything we can to conclude your complaint as soon as possible. However you need to be aware that, if your complaint has not been concluded by 1 April 2019, it will be transferred to the Financial Ombudsman Service
We will try to make this transfer as smooth as possible.
What this means to you:
If your complaint has not been concluded by 1 April 2019, we will transfer it to the Financial Ombudsman Service. The power to deal with Claims Management Companies complaints will also transfer to the Financial Ombudsman Service, and they will continue the investigation and make a decision following our Scheme Rules (a copy of which can be found on our website).
If you do not want your complaint to transfer to the Financial Ombudsman Service, please let us know. This will mean that your complaint will be treated as ‘withdrawn’ and will be closed. Please be aware that you will not be able to raise the same complaint with the Financial Ombudsman Service at a later date.
If, after 1 April 2019, you wish to complain about the service provided by a Claims Management Company, you will need to take your complaint directly to the Financial Ombudsman Service.
If you receive a final decision, but the Claims Management Company does not do what the ombudsman told them to do, we will only be able to enforce this decision for you if we started court proceedings before 1 April 2019. You are still able to enforce the final decision yourself but you may wish to take advice from your local Citizens Advice or similar organisation.
