The Compensation Act 2006 provides the statutory framework for the regulation of claims management activities. The secondary legislation and the Regulator's rules have all been made. Businesses have been able to apply for authorisation from 30 November 2006. The offence of providing claims management services without authorisation or exemption came into force on 23 April 2007.
This site is primarily aimed at claims management businesses. It seeks to give them all the information they need about the regulatory regime, in particular the authorisation process. The site also contains information relevant to those who deal with claims management businesses and a search facility that enables users to check whether or not a business has been authorised.
Latest News
New warning to businesses on taking up-front fees and cold calling
In response to complaints received from consumers, we are reminding claims management businesses about the rules about taking "up-front" fees and "cold calling". The attached Warning sets out the details and should be read by all businesses and particularly those dealing with Unenforceable Consumer Credit Agreement claims. We have been working closely with the OFT to address malpractice in this sector and this Warning is issued in conjunction with an OFT press notice issued today at http://www.oft.gov.uk/news/press/2009/72-09.
Unenforceable Consumer Credit Agreement cases – Update
The Judicial Communications Office has issued a statement in light of the activity surrounding the recent case heard in Chester County Court by His Honour Judge Halbert and the speculation and misreporting which followed the hearing. Contrary to some reports, there is no general stay on cases challenging the enforceability of Consumer Credit Agreements.
Cases of this type will therefore continue to be heard and decided on their own particular facts, although the Court may group similar cases for trial, where appropriate, in an effort to save costs and time. Further consideration is also being given to the transfer of selected cases to the Commercial Court in London for definitive ruling where new questions of law have been identified. The media release can be read in full here.
Informal Consultation on proposal to seek amendment to Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975
Claims Management Regulation has recently closed the informal consultation on the proposal to seek an amendment to the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975. The proposed amendment would enable the regulator to request the disclosure of all criminal convictions (including spent ones) from Individual Controllers (and Persons of Significant Influence) of businesses applying for authorisation, and to have the right to take into account this information when considering applications for authorisation.
Views were invited from authorised claims management businesses as well as any other interested bodies or individuals. The Claims Management Regulator received a total of 11 responses, and a summary of those responses has been published and is viewable here.
Claims Management Regulation Bulletin No. 5 – March 2009
The latest Claims Management Regulation Bulletin (Number 5) has now been published. The Bulletin contains important information on the use of agents, exempt introducers, telephone cold-calling and the launch of the Anonymous Reporting Hotline and can be viewed here.
Ministry of Justice – News Release February 2009
Following recent guidance issued on the marketing and advertising of claims management services in respect to potential claims for unenforceable credit agreements, the Ministry of Justice has issued a news release warning businesses about misleading claims in marketing. Justice Minister Bridget Prentice has said businesses misleading the public by claiming they can arrange for unpaid loans, credit card debts or other consumer debts to be written off have been told to stop or face action. The news release can be viewed in full here.
Annual Fee Payments 2009
All authorised businesses should have received by now correspondence from the Ministry of Justice Claims Management Regulation Unit about their authorisation and the annual fee due for 2009/2010. Thank you to all businesses who have returned their completed forms. The original correspondence indicated that invoices would be issued to businesses by the end of January. Invoices will now be issued into February and all businesses that have returned a completed form in time should have their invoice by 9th February. We will contact businesses if there is a problem with the form they returned or the invoice.
New guidance on the marketing of claims for unenforceable consumer credit agreement claims.
We have identified statements made in some marketing and advertising in relation to unenforceable consumer credit agreements that could be misleading. Guidance on what claims can, and cannot be made unless they can be justified, is given in Marketing and Adverting Claims Management Services: Unenforceable Consumer Credit Agreements. This should be read in conjunction with the covering letter.
Ministry Of Justice and OFT warn consumers about the risks of being misled over the enforceability of Consumer Credit Agreements.
To read the alert please click here.
Fees Determination 2009 – Consultation Response
We have today published the response to the Fees Determination 2009 Consultation.We received 3 responses, which helped informed our proposals.
The application for authorisation fee for 2009-10 will rise by 12.5% .There will be no increase in the annual fee paid by authorised businesses and no financial surcharge will be levied on businesses failing to provide updated financial information on annual turnover by the Regulators specified date. The Fees Determination paper included in the Consultation has been amended accordingly and is included in this response document.
The full Fees Determination 2009 paper can be viewed here.
Who needs to be authorised under the Compensation Act 2006 - Guidance Note (Revised)
The Regulator has recently reviewed the ‘Who needs to be authorised under the Compensation Act 2006’ guidance, and has made some changes in order to update and improve the note. The revised guidance note can be viewed here.
The authorisation of a number of firms has been suspended for failing to comply with the conditions of their authorisation. A full list of suspended businesses is available to view here.
Important notice regarding spoof e-mails.
The Regulator has become aware that spoof emails have been generated which appear as if they have been sent from the email address info@claimsregulation.gov.uk. These spoof emails have no association to the Claims Management Regulator, are beyond our control, and unfortunately we are unable to prevent it from being sent.
Please be assured that no personal details have been disclosed and if you do receive such an email it has happened by chance as the person(s) have not obtained your email address, or any other details, from the Regulator. Whilst we are unable to prevent such emails we are keen to monitor them in order to identify the person(s) responsible.
If you receive an email from info@claimsregulation.gov.uk which you believe to be a spoof please contact us on 0845 450 6858 to validate its authenticity. You should never disclose any personal or confidential details via email.