Financial Guidance and Claims Bill [HL]

Written evidence submitted by Gary Nixon (FGCB04)

My name is Gary Nixon and I am the owner of one of the UK’s largest claims management companies and we solely specialise in the Payment Protection Insurance reclaim industry.

I will try to keep my feedback as short as possible as I appreciate your time in reading through lots of feedback

The simple facts of my organisation are as follows..

1. The proposed fee cap of 20% would result in me no longer being able to run my company at a profit (we only make currently a 6.6% pre tax profit amount now) - in fact it would run at a total loss of almost £1 million pounds per year based on a 20% fee cap.

2. This would lead to the 450 people employed being made unemployed immediately after the fee cap is in place

3. I currently service over 40,000 customers each and every month.

4. In a survey carried out with our existing customer base - an overwhelming pattern emerged which was as follows..

A. 92% of customers said they would never have made a claim unless we had done it for them.

B. 89% of customers said they were completely happy with the fee they were charged for the service we had provided.

C. 85% of customers did not even know they had a PPI policy on their finances and were shocked to find out it was on there.

The evidence is there that the claims management industry accounts for the vast majority of claims made - the supporting evidence is also there to show that the vast majority of people who successfully claimed back money which was rightfully theirs - would never have received this money if the CMC did not carry out the work for them.

The proposed fee cap of 20% will put almost every CMC out of business which based on the above would be drastically at the detriment of the consumers.

The data which has been collated from the regulator is highly incorrect - they have mentioned the average refund is £1750 - which is not true at all - as one of the largest CMC’s in the country processing hundreds of thousands of customer claims per year - our average claim back per customer on average for the 6 years trading is £1235.56

The proposed fee cap is going to put the majority of CMC’s instantly out of business resulting in thousands of people out of work and hundreds of thousands of consumers being restricted on their obvious preferred method of claiming.

I ask and beg you that you please revisit the proposed fee cap level and do the right moral thing and allow CMC’ a to carry on providing the top quality service we do in order to claim money back for our customers.

These customers were already mis sold to by the banks and to allow a temporary fee cap of this level would simply make it even more damaging for consumers with a time bar already in place of August 2019 to claim - implementing this mis-calculated fee cap would drastically impact on the consumers who have already been hard done by once from the banks mis selling this product and taking billions of pounds from consumers.

Please allow Justice to be done and allow this consumers the opportunity to use freedom of choice when choosing their preferred CMC based on the different level of service, professionalism and fees which are on the market (like any other market) and trust in the numbers of

A. Customers who use CMC’s

B. Customers who are happy to pay the current fees charged by CMC’s

Please Accept and understand that this fee cap will end the CMC industry and debilitate consumers ability to make a claim.

Please don’t allow the consumers to lose out what is rightfully theirs and just leave the industry as is until the impending time bar in a matter of 17 months time.

Please do what is right.

Kind regards


January 2018


Prepared 1st February 2018