Claims Management Services

Justice written question – answered on 21st March 2012.

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Photo of Andrew Slaughter Andrew Slaughter Shadow Minister (Justice)

To ask the Secretary of State for Justice what steps his Department is taking to ensure consumers are aware of the free alternative to using claims management companies.

Photo of Jonathan Djanogly Jonathan Djanogly The Parliamentary Under-Secretary of State for Justice

Claims management companies are required to make explicit to prospective clients the right to seek further advice or to shop around, and if they give advice to clients, companies must also inform them of the existence of the Financial Ombudsman Service. The Claims Management Regulation Unit (“the Unit”) recognises the importance of making consumers aware that there is an alternative to using a paid representative to make a claim in relation to financial products and services and will take action against companies that breach these requirements. The Unit has produced specific guidance for consumers, setting out the wide range of self-help resources available from the Financial Ombudsman Service and consumer organisations.

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