Regulation of claims management services commences
23 April 2007
From today all claims management companies will be regulated by the Department for Constitutional Affairs. Those authorised to provide the regulated services must follow strict rules of conduct. This will ensure that consumers are given clear information about the options available for pursuing their claim. If an authorised person fails to comply with the rules, the Regulator will be able to take disciplinary action.
The regulation will help:
reduce malpractice including high pressure selling;
stop unauthorised marketing activity in hospitals;
reduce misleading advertising;
deliver clearer and more transparent contracts; and
ensure that authorised persons have a clear mechanism for dealing with consumer complaints.
A baseline study has also been published which provides an analysis of the sectors being regulated and outlines the strategy for dealing with malpractice.
Bridget Prentice said: "I am delighted to announce today the full commencement of claims management regulation. Appropriate action will be taken against those who wilfully flout the law.
The strict rules with which authorised persons must comply will help raise consumer confidence. The regulation has put in place vital safeguards for consumers when using the services of claims management companies and I am confident that it will also help raise standards across the industry.
The regulation has been delivered in record time and I am grateful for the widespread support that has made this possible. I hope we can continue to work together to make regulation more effective" .
Around 800 organisations have so far been authorised, and the authorisation process is continuing for applications received after the initial deadline of 16 February. Consumers will be able to check if a company is authorised by using the search facility for authorised persons provided on the Claims Management Regulation website at claimsregulation.gov.uk. Consumers can also call the claims management regulation general enquiry number on 0845 450 6858.
