Part 2: Claims Management Services Charges for claims management services Section 29: PPI claims and charges for claims management services: general
This section inserts general provisions relating to the interim restrictions on charges claims management companies and the relevant legal service providers can make for regulated services provided in connection with PPI claims. Subsection (2) states that the provisions of the section explain the terms used in the successive three sections.
	Subsection (3) sets out the maximum fee cap that applies during the interim period before regulation of claims management services is transferred to the Financial Conduct Authority. This has been set at 20% of the amount recovered for a claimant in satisfaction of their PPI claim. Subsection (4), however, does allow a service provider to recover a reasonable amount without breaching the interim fee cap restriction for work done in the event a claimant cancels their service contract after a cooling off period. Subsection (7) clarifies was is meant by the references to amounts recovered for the claimant.
	The remainder of the subsections (i.e. (5), (6), (8), (9), (10), (11), (12) and (13)) sets out the relevant definition and meaning of the terms used.