Government will not transfer claims management regulation
Industry News : 20 November 2012
It has been revealed that calls to transfer claims management regulation to an alternative independent regulator will be resisted by the government.
Speaking in a House of Commons debate last week, Justice minister Helen Grant expressed her belief that fundamental change was inappropriate at a time when reforms were tackling bad practice by the sector.
However, her department does plan to raise fees for claims management companies (CMCs) in preparation for an anticipated departure of companies from the market. The Ministry of Justice intends to increase application fees by 47% to £1,400 in 2013/14.
The government’s response to a consultation on CMCs is due to be released by the new year, Grant said. It is likely to be including plans which will require contract agreements between CMCs and consumers to be made in writing before any fees are taken.
In addition, CMCs will be required to state that they are regulated by the claims management regulator rather than the MoJ, and to publish terms and conditions on their website as standard.