The Government has announced that from 2013 the Legal Ombudsman will handle complaints about claims management companies and will have the legal power to ensure consumers can get compensation, where appropriate.
According to the Ministry of Justice (MoJ), the change will also enable the Claims Management Regulation Unit to refocus its resources on improving standards across the industry and take action against firms that consistently breach the rules by, for example, making unsolicited marketing calls and sending SMS texts.
Chief Legal Ombudsman, Adam Sampson, comments: “This is great news for the public and consumers as we have significant powers of redress to help protect them.”
A consultation which looks at strengthening the rules on claims management companies is currently open and the MoJ is inviting anyone with an interest to have their say.
Category: Insurance News