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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 »

Government will not set limit on payments permitted under referral fee ban exception

The government is not currently planning to set an upper limit on payments that are exempt from the referral fee ban as “consideration for services”, it has announced. The news came as the Claims Management Regulator issued preliminary guidance on how it will approach the ban.

November 23rd, 2012 | Comments Off on Government will not set limit on payments permitted under referral fee ban exception

From the referral fee frying pan into the advertising fire

We kind of all knew it anyway, but just how much money a large insurance company like the Direct Line Group makes from referral fees still took my breath away. As we reported earlier this week, the group received £110m from solicitors in the three and a half years since January 2009. Call it £30m a year and extrapolate (the group’s market share is 19% of motor and 18% of home insurance) and you are looking at around £150m a year going from the pockets of solicitors to insurance companies for the privilege of receiving cases. And that’s before the £100m or so insurers make every year from credit hire referral fees.

October 11th, 2012 | 2 Comments »