Part 2: Claims Management Services Charges for claims management services Section 31: PPI claims: interim restriction on charges imposed by authorised persons after transfer of regulation to FCA
This section deals with the application and enforcement of the interim fee cap by the Financial Conduct Authority after the transfer of regulation. Subsection (1) specifies that the prohibition that a person must not charge a claimant, or enter into an agreement that would require a claimant to pay, an amount that exceeds the fee cap (as set out in subsection (2)) is to be treated as a rule made by the Financial Conduct Authority and any functions conferred on the Financial Conduct Authority that apply in relation to general rules (such as section 1A(6) of, and Schedule 1ZA to, the Financial Services and Markets Act) also apply to that rule.
	Whilst a breach of subsection (2) is not a breach of statutory duty, under subsection (3) where a breach has occurred a claimant is entitled to recover any payment in excess of the cap and any provision(s) in an agreement to pay in excess of the fee cap unenforceable.
	Subsection (4) states that the prohibition under this Section will only apply to charges imposed, or to agreements that provide for the payment of charges, from the point from which claims management activity becomes a regulated activity (and thus regulated by the Financial Conduct Authority) until the coming into force of rules made by the Financial Conduct Authority by virtue of Section 21(2) of this Act.
	Subsection (5) states that the prohibition under this Section will only apply to charges imposed, or to agreements that provide for the payment of charges, during the period after the Financial Conduct Authority takes over regulation and ending when the Financial Conduct Authority have made their own rules under the new s137FD(1). This is known as the ‘second interim period’ and defined in subsections (6) and (7).