Claims management companies providing a poor service could be forced to pay compensation, according to plans published by the Ministry of Justice today.
From next year it will be the Legal Ombudsman who will handle complaints relating to claims management. The Ombudsman has the legal power to ensure consumers can get compensation where appropriate.
- A freedom of information request recently revealed that 734 claims companies were ‘cancelled’ (or closed down) by the MOJ regulator in the last 12 months, partly prompted by 9,570 complaints from the public – see HERE.
- For an interview with Adam Sampson, the legal ombudsman – see HERE.
The MoJ reckons that ‘thousands of consumers who have been let down by a small number of CMCs currently take their complaints to the regulator. Such complaints are currently handled by the MoJ’s Claims Management Regulation Unit. The unit will remain within the Ministry of Justice, but will ‘refocus its resources on working with the claims management industry to improve standards’.
‘This is great news for the public and consumers as we have significant powers of redress to help protect them. We are confident we can support the claims management regulator to improve standards across the industry.’
Adam Sampson, Chief Legal Ombudsman