The Ministry of Justice has published its 2014/15 Claims Management Regulation Annual Report, covering the main developments, achievements and progress made in claims management regulation over the last 12 months and setting out priorities for the future.
Key points of the report include:
- The power to impose financial penalties on Claims Management Companies (CMCs) for rule breaches has come into force.
- The Legal Ombudsman has begun accepting complaints about CMCs and CMCs are now required to make this avenue clear to consumers.
- The Chancellor announced a fundamental review of the regulation of CMCs which will report in early 2016. The Government says it will also bring forward proposals for a cap on CMC charges to their customers.
- Enforcement action has comprised 93 investigations, the cancellation of 105 authorisations, 296 warnings and compliance audits of 454 CMCs.
Work in 2015/16 will include the following priorities:
- Nuisance calls and unsolicited marketing.
- Unsubstantiated claims relating to financial products and services.