The Legal Ombudsman has investigated almost 5,000 complaints about claims management companies in the two years since its jurisdiction was expanded to cover them. But it has been warned to expect a major influx of more complaints if the government’s personal injury reforms come to pass.
Crystal Legal Services, a claims management company (CMC), has seen off a challenge from Lloyds Banking Group to one of its PPI adverts after three other CMCs had fallen foul of complaints by the bank.
A claims management company which made 40m nuisance calls in only three months has had its license revoked by the Claims Management Regulator. Kevin Rousell, head of the CMR, said the firm “demonstrated the worst excesses” of the industry.
The number of complaints to the Legal Ombudsman about claims management companies is gathering pace and passed 15,000 in the first nine months of 2015, it has emerged. LeO said almost half of the complaints were about fees.
The number of complaints about claims management companies received by the Legal Ombudsman in the first six months of this year has hit almost 9,000 – a far higher amount than expected. However the number actually investigated was lower than predicted.
The turnover of personal injury claims management companies (CMCs) bounced back 27% to £310m last year as the market began to “stabilise”, it has emerged. Applications by personal injury CMCs for authorisation from the Ministry of Justice also increased by almost two-thirds.
A “fundamental review” of claims management companies – along with a cap on the fees that they can charge consumers – was announced by Chancellor George Osborne in today’s Summer Budget.
Only one solicitor has been sent to the Solicitors Disciplinary Tribunal for breaching the ban on referral fees in personal injury cases, it has emerged. Meawhile, the head of claims management regulation said the “biggest CMCs are making more and more money”.
Only 4% of complaints about claims management companies (CMCs) received by the Legal Ombudsman (LeO) relate to personal injury work, it has emerged, in the first release of figures since Leo began its new role.
The number of personal injury claims management companies (CMCs) has fallen below 1,000, it has emerged, down from 2,300 at the start of 2013. Smaller CMCs have been hit hard by ban on personal injury referral fees, the cuts in portal fees and ban on inducements.