Claims management companies

A cap on the fees claims management companies charge customers has been introduced by the financial services regulator today, which it says will leave some people £1,000s better off.  

The number of complaints against payday loan firms soared by 130% in the past year, new figures from the financial watchdog show. But the majority of claimants are using claims management firms, meaning they won't get the full compensation payout if successful. If you've been mis-sold, here's how to claim for free.

Unhappy customers who have used claims management firms will be able to escalate their complaints to the financial ombudsman from today, as the sector will now be regulated by the Financial Conduct Authority. 

The financial regulator has published a new set of rules for claims management companies, including providing customers with more transparent fee information and telling them about free alternatives.