The fee cap for financial services claims
The cap applies to financial services claims started on or after 1 March 2022. The percentage falls as the award rises, and each band has an absolute maximum. All figures below exclude VAT; the FCA also publishes the maximum including VAT.
- £1 to £1,499: maximum 30%, capped at £420 excluding VAT
- £1,500 to £9,999: maximum 28%, capped at £2,500 excluding VAT
- £10,000 to £24,999: maximum 25%, capped at £5,000 excluding VAT
- £25,000 to £49,999: maximum 20%, capped at £7,500 excluding VAT
- £50,000 and above: maximum 15%, capped at £10,000 excluding VAT
The cap does not apply in court
If you choose to pursue a claim in court with a claims management company, the fee cap does not apply and you may pay a higher percentage of any compensation you receive. That is the single most important sentence on this page, and it is why the forum matters as much as the fee.
What an authorised firm must give you
Authorised claims management companies operate under rules, and those rules give you things you should insist on.
- A one-page summary of the key information, before you sign anything, including your cancellation rights
- A detailed breakdown of how it will charge you, with examples — sometimes called a cost illustration
- A 14-day cooling-off period in which you can cancel without being charged
- Clear information about the Ombudsman, the FSCS and any official route you can use yourself
- For a financial services claim, a confirmation that you do not want to make the claim yourself for free
- Updates on key developments, and how to complain if you are unhappy
What they must not do
They must not send you emails or texts unless you agreed, make marketing calls unless you specifically agreed, approach you in person, or use any form of high-pressure selling such as asking for an on-the-spot decision. They must not charge more than the fee cap allows. Lead generators, who pass your case on, may also be paid a fee by the firm or lawyer that receives it — ask whether one is involved in your claim.
Check who you are dealing with
Claims management companies providing services for financial services claims must be authorised by the FCA, unless they are regulated by a legal regulator — the Solicitors Regulation Authority, the Bar Standards Board, CILEx Regulation or the Law Society of Scotland. Check the firm on the FCA Firm Checker or the relevant legal regulator’s register. If you are contacted by a firm you believe is unauthorised, report it to the FCA; unlawful marketing contact can also be reported to the Information Commissioner’s Office.
The free alternatives
Complaining to the firm is free. The Financial Ombudsman Service is free to consumers. FSCS is free to claim from, where it applies. MoneyHelper provides free guidance. Those four facts are the reason this site exists: most people who pay a percentage of a financial services award did not need to.