- If you are in dispute with a firm concerning any kind of financial services product, and you can’t get satisfaction, the Financial Ombudsman Service is free to use and despite protestations as to its independence, a lot of its adjudicators will bend over backwards to find in favour of the consumer. DIY-it and you get to keep all your compensation but a CMC will keep around 35% of any compensation.
2. If the firm you dealt with has gone bust you can claim from the Financial Services Compensation Scheme which is funded by firms like ours. DIY-it and you get to keep all your compensation but a CMC will keep around 35% of any compensation.
3. A large percentage of CMCs are dishonest, act like data protection laws don’t exist, and are in league with scammers. I know because I mystery shopped them and passed all the evidence to the MoJ and FCA. Once you’ve signed up with a CMC you can count on your info being sold on to scammers who, for years afterwards, will phone you trying to carry out advance fee frauds.
There may be some honest CMCs out there but I’ve yet to find one. If you do have a genuine claim and you really can’t handle it yourself, go see any genuine regulated IFA firm. Most will help you for a fixed fee agreed in advance that will be a lot less than 35% of any compensation obtained.