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CMC Fees Explained — Why You Should Complain for Free

Last updated: 28 February 2026

## CMC Fees Explained - Why You Should Complain for Free When dealing with car finance issues, it’s crucial to understand the financial implications of working with a claims management company (CMC). At MLJ.org.uk (MLJ), we often receive inquiries about the fees associated with these companies and whether consumers can handle complaints independently. This article aims to clarify how CMCs operate, their typical fee structures, and why it might be more beneficial for you to complain directly to your lender. ### Why Consider Complaining Directly? When dealing with car finance disputes, one key consideration is the cost involved in working with a CMC. These companies charge fees that can significantly reduce any compensation you may receive. For instance, a typical fee structure for a CMC might involve taking 25-40% of your compensation (plus VAT in some cases). On an average £829 payout (FCA estimate), a CMC charging 30% would take £210, leaving the consumer with only £490. This substantial fee can make it worthwhile to consider handling your complaint independently. ### How Do Claims Management Companies Work? Claims management companies submit complaints on behalf of consumers who feel they have been wronged in their car finance agreements. These companies often specialise in various areas such as discretionary commission arrangements (DCAs), mis-selling, and other financial irregularities. While some CMCs may offer valuable support and expertise, it is important to weigh this against the significant fees they charge. ### Why You Do Not Need a Claims Management Company Consumers do not need to use a claims management company. In fact, you can complain directly to your lender for free. By handling the complaint yourself, you avoid paying high fees that could otherwise reduce your compensation. The Financial Conduct Authority (FCA) motor finance scheme covers 12.1 million eligible agreements (FCA, March 2026), with an estimated £7.5 billion total redress (FCA estimate) from 6 April 2007 to 1 November 2024. ### How to Verify FCA Authorisation Since April 2019, CMCs must be authorised by the Financial Conduct Authority (FCA). Before engaging with any claims management company, it is essential to verify their authorisation. You can do this by searching the FCA Register at https://register.fca.org.uk/s/. 1. Go to the FCA Register website: Visit https://register.fca.org.uk/s/ 2. Enter the CMC name or reference number: Use the search bar to enter either the company’s full name or their reference number. 3. Review the authorisation status: Ensure that the company is listed as authorised and check for any relevant information or warnings. ### Sources and References - Financial Conduct Authority (FCA), 2024 - FCA Register: https://register.fca.org.uk/s/

Key FCA Figures

The FCA confirmed on 30 March 2026: 12.1 million eligible agreements, £829 average compensation per agreement, £7.5 billion total redress at 75% consumer uptake, and £9.1 billion total cost to firms. The scheme covers agreements from 6 April 2007 to 1 November 2024. Two deadlines apply: 30 June 2026 for post-2014 agreements and 31 August 2026 for pre-2014. Final complaint deadline: 31 August 2027.

You can complain to your lender directly for free. You do not need a claims management company.

--- MLJ.org.uk (mlj.org.uk) is a free, independent information service. We are not a claims management company, solicitor, law firm, or financial adviser. We do not handle complaints, process claims, charge fees, or accept any percentage of compensation. This information does not constitute legal or financial advice. You can complain to your lender directly for free. You do not need a claims management company. If your lender rejects your complaint, you can escalate to the Financial Ombudsman Service at no cost. For personalised legal or financial advice, consult a qualified professional.

Frequently Asked Questions

How much do Claims Management Companies typically charge for car finance complaints?

Claims Management Companies (CMCs) often charge fees that can range up to 25-40% of any compensation received from the lender (FCA estimate). This means if you are owed £1,000 in compensation, a CMC might take up to £400 as their fee.

Why should I consider complaining directly to my car finance provider instead of using a Claims Management Company?

You can complain directly to your lender for free. This avoids the high fees charged by CMCs, which can range from 25-40% (FCA estimate). By handling the complaint yourself, you retain all of any compensation owed.

What is the role of the Financial Conduct Authority in regulating Claims Management Companies?

The Financial Conduct Authority (FCA) regulates CMCs to ensure they operate fairly and transparently. All CMCs handling car finance complaints must be FCA-authorised, which you can verify through the FCA Register.

How common are disputes in car finance agreements involving discretionary commission arrangements?

Disputes over discretionary commission arrangements (DCAs) are fairly common. The FCA estimates that there have been 12.1 million eligible agreements car finance agreements and £7.5 billion (FCA, March 2026) potentially at stake (FCA estimate).

Important: MLJ.org.uk is an independent information resource. We are not a claims management company, solicitor, law firm, or financial adviser. We do not process claims, take fees, or provide advice. Where the law gives you a right to complain or claim directly (to a lender, council, FOS, court, or regulator), you can do so without paying a third party. MLJ.org.uk is operated by Copious Ltd, registered in England and Wales, company number 11437826.