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”.
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.
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.
The Ministry of Justice has announced huge increases in the regulation fees paid by claims management companies. The MoJ said that despite the drop in the number of firms, regulation could not be similarly scaled back.
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.