[Sir Alan Meale in the Chair] — Backbench business — Claims Management Companies

Part of the debate – in Westminster Hall at 2:39 pm on 8th November 2012.

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Photo of Andrew Slaughter Andrew Slaughter Shadow Minister (Justice) 2:39 pm, 8th November 2012

They could, but they clearly do not. CMCs see a lucrative industry, because there is relatively little cost to them. I am not quite sure what they hope to get out of it in the end, other than perhaps nuisance payments both to make the claim and to make the reference to the financial ombudsman. Given the sharp practice that is clearly involved in the sector, I am not sure whether the Ministry of Justice’s proposals are up to the mark in dealing with it. We have heard some good examples of companies that simply disappear overnight and reappear in another guise. I am not sure whether enforcement is dealt with sufficiently in the current proposals.