When dealing with compensation claims — whether for personal injury, financial losses, or mis-sold products — many people turn to a claims management company (CMC) for help. A good CMC can make the process smoother and increase your chances of success. However, choosing the wrong company or misunderstanding how they work can lead to frustration, wasted time, and lost money.
Here’s a guide to the biggest Claims Management Company mistakes to avoid.
1. Not Checking Their Authorization
Before you hand over your personal details or sign any agreement, make sure the claims management company is authorized by the Financial Conduct Authority (FCA).
Authorized companies must follow strict rules that protect you. If the CMC isn’t authorized, you could be left vulnerable with little or no legal protection if things go wrong.
Tip: You can easily check authorization on the FCA website.
2. Ignoring the Fees and Charges
One of the most common mistakes is not understanding how much the CMC will charge. Some companies take a percentage of your compensation, while others charge upfront fees.
Always ask:
- Is the fee a flat rate or a percentage?
- Are there additional costs if the claim fails?
- Are there cancellation charges?
Transparent companies will explain this clearly before you agree to anything.
3. Not Reading the Terms and Conditions
The small print matters. Buried in the terms and conditions could be important details about:
- How long the process may take
- What happens if you want to cancel
- What your responsibilities are as a client
Take the time to read and understand the agreement fully. If something isn’t clear, don’t be afraid to ask questions.
4. Believing Unrealistic Promises
Be wary of claims management companies that guarantee success or promise very high payouts. No legitimate CMC can promise you a specific outcome.
Good companies will explain:
- The strength of your case
- The potential risks involved
- An honest estimate of what you might recover
If it sounds too good to be true, it probably is.
5. Overlooking Reviews and Reputation
Not all CMCs are created equal. Some have a history of poor customer service, slow processing, or hidden fees. Before signing up, do some research:
- Look for online reviews and testimonials.
- Check for any complaints filed with the FCA or the Legal Ombudsman.
- Ask friends or family if they have any recommendations.
A company’s track record can give you a clear picture of what to expect.
6. Failing to Ask About Communication
Poor communication is a major source of complaints against CMCs. Make sure you know:
- How often you’ll get updates
- Who your main point of contact will be
- How quickly they respond to queries
A reliable claims management company will keep you informed every step of the way without you having to chase them.
7. Not Understanding the Process
Some people believe that once they hire a CMC, they can sit back and wait for the money to roll in. In reality, you might still need to:
- Provide documents and evidence
- Answer questions about your claim
- Attend medical assessments or hearings
Good CMCs will explain the process clearly from the start so you know what’s required.
8. Signing Under Pressure
High-pressure tactics are a big red flag. If a company is pushing you to sign a contract quickly or warning you that you’ll “miss out” if you don’t act now, be cautious.
You should never feel rushed into making a decision. A reputable company will give you the time you need to consider your options carefully.
9. Choosing Based Only on Price
While cost is important, it shouldn’t be the only factor. The cheapest company isn’t always the best, and sometimes low fees can mean poor service.
Balance cost with:
- Experience handling claims like yours
- Positive customer feedback
- Professionalism and transparency
Remember, getting the compensation you deserve is the main goal.
10. Forgetting About Alternatives
Finally, remember that you don’t always need a claims management company. In many cases, you can handle a claim yourself — especially for straightforward cases like PPI refunds, flight delays, or simple personal injury claims.
DIY claims can save you a lot of money in fees. Some people also choose to work directly with solicitors, especially for complex cases.
Final Thoughts
Choosing the right claims management company can make a big difference to your experience and your result. By avoiding these common mistakes like ignoring fees, skipping the paperwork, or falling for unrealistic promises — you’ll protect yourself and improve your chances of a smooth and successful claim. Click here for more information about Continental Car Hire.
