Do I Need A Claims Company?
No. You do not need a claims management company (CMC) to make an unaffordable lending complaint. You can complain directly to the lender free of charge, and refer the matter to the Financial Ombudsman free of charge if you are not satisfied. Many people do exactly that, and many succeed. But for plenty of others, the time, effort and confidence required to handle the complaint themselves makes using a regulated CMC the more practical option. This page sets out the trade-off honestly.
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What a claims company actually does
A regulated CMC takes the case off your hands. The work typically includes:
- An initial eligibility check based on your account history.
- A Subject Access Request to the lender to obtain account, application and affordability records.
- Drafting and submitting the complaint to the lender, with supporting evidence.
- Managing the lender correspondence during the eight-week response period.
- Reviewing the lender’s final response and advising on whether to accept or escalate.
- Handling the FOS referral if needed, including drafting submissions and managing the FOS investigation.
- Reviewing any final offer or FOS decision and ensuring redress is paid correctly.
You don’t deal with the lender directly during this. You don’t take the calls, write the letters, or chase responses. The CMC also brings practical experience — they handle these cases all day, every day, and know what evidence the lender expects and what FOS finds persuasive.
What CMCs cost
CMCs charge a success fee — a percentage of the redress recovered. Since 2022, the FCA has imposed fee caps on CMC fees in the consumer credit context. The cap structure:
- For redress up to £1,499.99 — maximum fee of 30% (excluding VAT), capped at £420.
- For redress between £1,500 and £9,999.99 — capped at £600 (28%, excluding VAT).
- Stepped caps continue at higher amounts up to £24,000 maximum CMC fee on the largest cases.
- No fee is payable if the claim is unsuccessful.
These caps apply to FCA-regulated CMCs. There should never be an upfront fee, and there should never be any charge if the case fails. Any CMC asking for upfront payment is a sign to look elsewhere.
When using a CMC makes sense
A CMC is more likely to be the right call where:
- You don’t want to deal with the lender directly.
- The case is complex — multiple loans, multiple credit limit increases, several lenders to claim against.
- You aren’t confident drafting a complaint or making submissions to FOS.
- You don’t have the time to manage the process over several months (or longer if it goes to FOS).
- You’d rather pay a percentage of the recovery than spend the hours yourself.
- You’ve had a complaint rejected by the lender and don’t feel comfortable taking it to FOS yourself.
When doing it yourself makes sense
Direct complaint is more likely to be the right call where:
- The case is simple — a single loan, clear facts, straightforward affordability question.
- You’re confident with paperwork and comfortable writing letters.
- You have time to manage the timeline.
- You want to keep the full recovery — no fees, no percentages.
- You’re already familiar with the FOS process or have used it before.
Things to check before using any CMC
A regulated CMC should:
- Be authorised and regulated by the FCA — verifiable on the FCA Register at register.fca.org.uk.
- Provide a full pre-contract document setting out the fee structure and cancellation rights before you sign.
- Give you a clear 14-day cooling-off period from signing.
- Not charge any upfront fee.
- Not charge any fee at all if the claim fails.
- Be clear about what work they will do and what you need to do.
Free alternatives
Free help is available from:
- Citizens Advice — for general help with making a complaint.
- StepChange and National Debtline — for help where unaffordable lending sits alongside wider debt issues.
- MoneyHelper — government-backed money guidance, including on complaints.
- The Financial Ombudsman Service itself — free at point of use, accepts complaints from consumers without representation.
The Financial Ombudsman is designed for consumers to use directly. There is no advantage to having a representative when it comes to FOS’s investigation; the Ombudsman applies the same fair and reasonable test either way.
Claims Bible’s position
Claims Bible is an FCA-authorised introducer. We do not charge consumers a fee. Where a case is referred to a regulated claim partner and the claim succeeds, the partner charges a success fee within the FCA’s caps. There is no fee if the claim is unsuccessful. The choice is yours: complain directly, or use the partner. Both routes are open.
Related guides
- Claiming yourself vs using a CMC
- How a claim works step by step
- How the Financial Ombudsman handles unaffordable lending complaints
- Do I have an unaffordable lending claim?
- What evidence do I need?
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