22nd May 2023

Badges? We don’t need no stinking badges 5!

Claims management companies have, in the eyes of many in the IFA world, managed to portray a world of plenty to hard pressed consumers in the troubled, distressed worlds of 2020 and 2021 and it would seem that hard pressed families are being offered yet another opportunity in 2023 by AMK Legal. Their target is St James’s Place.

Indeed, many of you have read Alan Lakey’s excellent piece, Nightmare On Compensation Street in March 2021 on CMC’s as a case in point.

In times of hardship where else on earth can a path be laid to such potential riches as one carefully manicured by CMC’s, with the assistance of regulations designed to, in part stop it happening.

I had thought that when their regulation passed to the FCA that some success would be achieved in rooting out the rogues and vagabonds that roamed the Blazing Saddle's Like Rockridge world they had thrived in.

But amazingly, some still appear to be regulated by the Law Society

CMC’s are supposed to make clear that you can make complaints to the FOS for free. AMK does on the T&Cs section, along with their fees.

AMK’s fees are quite something. 

AMK Legal Ltd will endeavour to recover all monies in respect of my claim and I undertake to forward any payment from my bank or financial adviser to me within seven days from the date received, subject to the agreed fee of 40% plus VAT – total fee payable 48%. We require that you promptly pay our fee no later than 7 days after you receive your compensation (if you are paid direct) or if you have no intention of accepting the offer and we recommend that you do so, 7 days after our recommendation. In the event that our fee remains unpaid we reserve the right to refer your case to third party Debt Collectors – we currently use BCA Business Services Ltd.

So, if you refuse to accept the offer that they advise you to accept, a fee is still due!

This firms approach is quite “holistic.

Do you qualify for a claim?  

If you can answer "NO" to any of these questions there is a good chance you could claim:

?  Have you had regular 6 monthly meetings with your adviser?

?  Has your adviser asked you about changes in your personal circumstances recently?  i.e. got married, got divorced, had children, moved house, etc

?  Has your adviser discussed your views on investment and appetite for risk recently? Use our free claim checker to find out if you qualify now. 

It's completely free and there is no obligation.  You'll find out in minutes if you're eligible to make a claim.

It could be worth thousands of pounds to you!

Now as we all know, if you want to complain to the Financial Ombudsman Service there is a time limit of six years from when you were sold the product, or three years from when you noticed (or ought reasonably to have become aware) something was wrong – whichever is later.

This is, simply put, a ‘fishing expedition, how can any firm, advisory or CMC market their services with a statement such as this? 

If you used St James's Place in the last 10 years. It's likely you paid 'hidden fees' and could be due compensation. 

As an industry, we continue with the struggle to restore trust in what we do. And all it takes to damage those aspirations are the actions of CMCs who prey on the vulnerable, promising thousands in ‘compo’.

For some period of time I have fought against the existance of CMC’s, with the valuable support and intellectual input of Alan Lakey. We were responsible in no small part for having the regulation of CMCs put under the FCA remit.

Advisers should realise that a couple of years ago an estimated 75% of complaints to the Financial Services Compensation Scheme come from CMCs and 50 per cent of claims to the Financial Ombudsman Service are from CMCs.

Many may be aware that the FOS cannot investigate a case if legal action has been initiated by the client. If a CMC works on the basis that “if your complaint is not successful you can refer it to the Financial Ombudsman Service for free” then the regulatory view should be that CMC engagement is the same as starting legal action and they lose that fall back? 

Just a thought?

Panacea Comment