Cap will apply to most redress claims
It’s proposed that the new cap will apply to all redress claims where cash is awarded, apart from PPI claims which are already subject to a 20% cap set by parliament. The FCA says this will save some several thousand pounds, with total expected savings expected to be £9.6 million a year.
Under the proposals, claims management companies will also be forced to tell consumers – before a contract is entered into – how the fees they pay will be calculated and signpost free alternative routes to redress available.
A consultation on the price cap is now open until 21 April and the FCA and expects to confirm its plans in Autumn 2021, with a cap to follow after. If the cap gets the go-ahead, the FCA will monitor its impact on the market and on consumers.
‘Definitely the right move’
Martin has welcomed the move saying it’s “definitely the right move”. He tweeted the following this morning: