Regulation of Claims Management Companies set to be tightened following Ministry of Justice consultation
Industry News : 24 May 2012
The Ministry of Justices’ regulation of claims management companies is due to be concentrated on in a planned consultation on how the regulating can be tightened.
The plans were confirmed by a Ministry of Justice spokesman who did not specify a date for the consultation. As of yet, the Ministry itself has not published any official details.
Debbie Newberry, practice development lawyer at Kennedys Law said: “It seems quite clear that the government are very focused on tackling whiplash claims. That is directly related to CMCs. I think that it’s all part of the overall desire to regulate and make sure that, in relation to referral fees, that the whole picture is tackled.”
In addition to claims management company regulation, the Ministry of Justice has two further consultations on the way. One will be focussed on setting up independent medical panels to assess whiplash claimants, and the other will be on increasing the threshold of the small claims court.