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CMCs rake in over £6bn in past 10 years of regulation

Claims management companies have earned over £6bn in the past decade, new figures from the Claims Management Regulator have shown. In a special anniversary report to mark 10 years of regulation, the CMR said that the number of CMCs had shrunk from a peak in 2011 of 3,213 to 1,388 in 2017.

July 20th, 2017 | No Comments »

LeO keen on bringing unregulated providers within its remit

The Legal Ombudsman has pledged to avoid pursuing an “expansionist” strategy when considering expanding its jurisdiction, but nevertheless welcomed the Competition and Markets Authority’s suggestion that it could handle complaints against unregulated legal providers.

April 21st, 2017 | No Comments »

MoJ mulls transferring regulation of claims management companies to FCA

The Ministry of Justice is considering transferring the regulation of claims management companies to the Financial Conduct Authority, it has emerged. The aim is to bring in a “much more rigorous regulatory regime for CMCs”.

October 2nd, 2015 | No Comments »

LeO receives almost 1,000 CMC ‘contacts’ in first three weeks

The Legal Ombudsman has received just under 1,000 consumer ‘contacts’ about claims management companies in its first three weeks of complaints handling, it has emerged.

February 19th, 2015 | No Comments »

LeO recruits team of 30 to tackle claims management complaints

The Legal Ombudsman has recruited a team of 30 to deal with the thousands of complaints about claims management companies it will receive from today, it has emerged.

January 28th, 2015 | No Comments »

CMCs which break the rules face huge fines

Claims management companies (CMCs) which break the rules this year face potentially huge fines – of up to 20% for those with an annual turnover of more than £500,000. Smaller CMCs can be fined up to £100,000.

January 7th, 2015 | No Comments »

65 CMCs warned over referral fee ban compliance in first quarter of 2014

The Claims Management Regulator has warned over 65 claims management companies about their compliance with the referral fee ban in the first three months of this year, it has emerged.

July 9th, 2014 | 1 Comment »

CMCs to pay up to £40,000 each to benefit from Legal Ombudsman

Claims management companies will have to pay a separate ‘Lord Chancellor’s complaints fee’ of up to £40,000 on top of their annual regulation fee with the shift in complaints handling from the Ministry of Justice to the Legal Ombudsman.

May 14th, 2014 | 1 Comment »

CMCs “cash in” on up to £5bn of PPI compensation, says Citizens Advice

Claims management companies have pocketed up to £5bn of the £22bn of compensation secured by consumers for mis-sold payment protection insurance, according to an analysis by Citizens Advice.

March 6th, 2014 | No Comments »

Sharp fall in number of CMCs as government confirms tough new conduct rules

There was a sharp increase in the number of claims management companies closing down in the first three months of 2013 ahead of the referral fee ban coming into force, Legal Futures can report. The news comes as the government announces a tightening of CMCs’ conduct rules.

April 8th, 2013 | No Comments »