The Ministry of Justice (MoJ) has announced that claims management companies (CMCs) that are currently under investigation will be named online tomorrow in order to give consumers peace of mind regarding the action being taken on their complaints.
The list which will be published will include details of what action is being taken against the CMCs and the offence they have committed. A further list also went live last week on the MoJ website, which compiles closed cases with the same details being displayed.
The MoJ want to show that its enforcement is working in the wake of the introduction of Legal Aid, Sentencing and Punishment of Offenders (LASPO) when it comes to dealing with CMCs practising in the field of personal injury and Payment Protection Insurance (PPI).
Over 10,000 complaints were made last year in regards to CMCs surrounding issues such as misleading marketing, high pressure sales, poor complaints systems and unclear fees.
The MoJ‘s head of regulation Kevin Rousell said: “By publishing all enforcement action it will send a clear message to the industry that we will not tolerate firms that break the rules. This is part of ongoing work to drive malpractice out of the industry and improve the reputation for the vast majority of CMCs that do follow the rules.”
A new code of conduct, devised by the Legal Ombudsman, which is currently being used for solicitors, will be extended to claims management companies later this year. This will enforce written contracts before any fees are taken by the CMCs and is hoped will continue to cutback on the amount of malpractice within the industry.