One of the most common questions we hear is: do I actually need a claims management company, or can I just complain to my lender directly? The answer depends on your circumstances — and here is an honest look at both routes.
The DIY Route: Complaining Directly to Your Lender
You have the right to complain directly to your lender at no cost. You can write to their complaints department, explain that you believe a discretionary commission arrangement was in place on your agreement, and request redress. If the lender rejects your complaint or fails to respond within eight weeks, you can escalate to the Financial Ombudsman Service — also free of charge.
The DIY route costs you nothing financially. However, it does require your own time to research, write, and follow up on your complaint. It can also be more difficult to navigate if your lender uses technical language or pushes back on your claim.
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Using a Claims Management Company
A claims management company (CMC) will handle the process on your behalf — identifying your agreement, drafting your complaint, liaising with lenders, and escalating if needed. This removes the administrative burden from you entirely. In return, a CMC typically charges a fee, usually a percentage of any compensation you receive — commonly between 20% and 36% including VAT. No win, no fee arrangements mean you pay nothing if the claim is unsuccessful.
Which Is Right for You?
If you are comfortable dealing with financial institutions, have time to manage correspondence, and know the details of your agreement, the DIY route can save you money. If you would rather have someone else handle it, or you have multiple agreements across different lenders, a CMC can simplify the process considerably. The key is to understand the fee structure clearly before signing up with any company.
What About the FCA Redress Scheme?
Once the FCA’s formal redress scheme is in place, lenders may be required to contact affected customers directly — which could mean you receive compensation without having to claim at all. However, this is not guaranteed for every affected customer, and registering a claim in advance provides an additional layer of protection.
Whatever route you choose, the first step is the same: check whether your agreement is eligible before deciding how to proceed.