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Claims Management Services

Question for Ministry of Justice

UIN HL841, tabled on 3 July 2014

To ask Her Majesty's Government what action are they taking to improve practices in the claims management industry.

Answered on

14 July 2014

The Claims Management Regulator (CMR) is making a number of reforms to provide better consumer protection, stricter conduct requirements and stronger enforcement action to improve practices in the claims management industry. The CMR will introduce in October a new set of conduct rules to crackdown on poor practices, particularly in relation to financial claims. The new rules will strengthen requirements for CMCs to ensure that claims are properly substantiated and any leads they receive through telemarketing are legally obtained. Subject to parliamentary approval, by the end of this year new legislation will give the CMR the power to fine CMCs for poor conduct. More resources have been deployed to tackle CMC non compliance and the names of CMCs under investigation or subject to recent enforcement action are now published on the GOV.UK website at: www.gov.uk/government/publications/claims-management-regulator-enforcement-actions. Reforms have also been made to the internal governance of the CMR. Two non executive members have been appointed to the executive-led CMR Board to help bring a greater element of independent challenge and continuous improvement.