Claims Management Companies – What You Need to Know
The Ministry of Justice, through its Claims Management Regulation (CMR) unit is directly responsible for regulating the activities of businesses providing claims management services within England and Wales.
All regulated claims management companies (CMCs) are required to comply with certain conditions of authorisation which are set by the Regulator. Non-compliant claims management companies can face statutory enforcement action which can lead to the suspension, variation or cancellation of their authorisation.
Your Money Claim audit
During the 2013/14 regulatory year, Your Money Claim was audited by the CMR unit and was found to be compliant with their conditions of authorisation.
During the same period, 198 regulated claims management companies had their authorisations cancelled, 2 were suspended and 1 had the terms of their authorisation varied.
Indeed, since 2011, the total number of claims management companies has dropped by more than 1,000.
The regulator regularly issues press releases of it’s findings.
Furthermore, and to ensure that the claims management industry delivers the best possible results for its clients, the CMR unit has recently recruited even more enforcement staff and introduced a more stringent set of conduct rules for claims management companies to follow.
And who, might you ask, pays for all this?
Not the taxpayer… all of these increases have been funded by the claims management companies themselves through an increase in their annual fees.
Your Money Claim View
Your Money claim considers this to be good news for the industry and we welcome continued action from the CMR to remove licences from companies with poor practices.
We do not believe that rogue claims management companies should be allowed to plague hard working people and waste their time, bombarding them with unwelcome calls and misleading information.
It’s not fair that the poor firms out there are sometimes able to tarnish the image of good CMCs so it’s nice to see the regulators clamp down where needed. If only we could see the same kind of regulatory action against banks and lenders for their part in the biggest financial scandal ever to hit the UK. We’ll keep our fingers crossed, but unfortunately we don’t think action will be forthcoming any time soon.
So, if you have been the victim of the Payment Protection Insurance (PPI) mis-sale scandal, and want to ensure that your claim will be dealt with by a compliant and professional claims management company, you need look no further.