One year of clamping down on cowboy claims companies - A success story

One year of clamping down on cowboy claims companies - A success story

LONDON, May 22, 2008/3mnewswire.org/ -- Cowboy claims companies have been forced to clean up their act says a report out today.

The Ministry of Justice's first annual report says better regulation has significantly reduced cold calling in person, which includes the practice of 'clipboarding' - knocking on doors and aggressively approaching people in shopping centres. Unauthorised advertising and marketing in hospitals have also been almost entirely removed.

Bridget Prentice said:

"The regulation has put in place vital safeguards for consumers when using the services of claims management companies and is raising standards across the industry.

"The new rules that claim managers must now follow have cleaned up the industry. Consumers can have more confidence that they will be dealt with fairly when seeking to make a claim.

"I am delighted to present the first annual review for the Ministry of Justice Claims Management Regulation Unit"

Those authorised to provide the regulated services must now follow strict rules of conduct. This will ensure that consumers are given clear information about the options available for pursuing their claim and the associated costs. If an authorised person fails to comply with the rules the regulator can take appropriate disciplinary action.

Other successes include a strategy developed to deal with outright fraud like contrived accidents and a significant reduction of malpractice by companies handling claims made to the Criminal Injuries Compensation Authority, with some businesses voluntarily leaving the market.

The speed in which regulation was introduced - nine months from Royal Assent to the Act being fully in force - and the success in raising awareness among businesses who would need to be authorised resulted in three times more businesses coming forward than had been anticipated. The flexibility in the legislation and the regulatory framework means we can respond to such demands quickly.

3mnewswire.org