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Claims Management Services: Regulation

Department for Culture, Media and Sport written question – answered on 7th June 2016.

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Photo of Lord Mendelsohn Lord Mendelsohn Shadow Spokesperson (Business, Innovation and Skills)

To ask Her Majesty’s Government what plans they have to introduce an enforceable regulatory regime of any type to tackle nuisance calls, texts and other forms of marketing for claims management companies.

Photo of Baroness Neville-Rolfe Baroness Neville-Rolfe The Parliamentary Under-Secretary of State for Culture, Media and Sport, The Parliamentary Under-Secretary of State for Business, Innovation and Skills

The Government is taking forward a range of measures to tackle nuisance calls, which will increase consumer protection and choice by strengthening the Information Commissioner's Office's (ICO) ability to take enforcement action against organisations that break the law.

Specific actions include requiring direct marketing callers to display calling line identification; strengthening the ICO's direct marketing guidance; and exploring the extension of the ICO’s powers of compulsory audit to more of the organisations that generate nuisance calls.

The Government also intends to establish a tougher regulatory regime for Claims Management Companies (CMCs) by transferring responsibility for claims management regulation to the Financial Conduct Authority; re-authorising all CMCs under a more robust process; and holding managers of CMCs personally accountable for the actions of their businesses.

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