Claims Management Services

House of Lords written question – answered on 26th September 2014.

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Photo of Lord Kennedy of Southwark Lord Kennedy of Southwark Labour

To ask Her Majesty’s Government what assessment they have made of the application of the Conduct of Authorised Persons Rules 2013.

Photo of Lord Faulks Lord Faulks The Minister of State, Ministry of Justice

The application of the Conduct of Authorised Persons Rules (“Rules”) is under continuous review. The Rules were first introduced in 2007 and revised between April and July 2013 to strengthen existing action to drive out poor practices and better protect consumers. Most crucially verbal contracts were brought to an end and a ban was imposed on claims management companies (“CMCs”) offering cash incentives or similar benefits to consumers to bring claims.

This year, in response to concerns raised by the financial services industry, the Financial Conduct Authority and the Financial Ombudsman Service regarding the poor practices of some CMCs presenting financial claims, the Department's Claims Management Regulator consulted on changes to the Conduct of Authorised Persons Rules 2013 and published the response in June 2014. The new Rules will come into effect in October 2014.

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