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MoJ vow to crack down on chasers

The Ministry of Justice has committed to improving its supervision of claim management firms, according to Labour peer Roy Kennedy.

Justice minister Lord McNally agreed to meet with Kennedy in response to a question in the House of Lords in March. At the time, McNally accepted the Government must do more to crack down on “dodgy practices” used by CMCs and suggested there may be “a better home” for CMC regulation than the MoJ.

This week, Kennedy met with McNally, Justice minister Jonathan Djanogly and consumer group Which?

Speaking to Money Marketing after the meeting, Kennedy says McNally and Djanogly revealed regulation of CMCs will remain at the MoJ but it is looking at how it can “tighten up” this regulation.

He adds McNally and Djanogly told him they will talk to Treasury financial secretary Mark Hoban about improving the way banks handle compensation claims. Kennedy says: “It is fine for CMC regulation to stay at the MoJ as long as it is done properly. The MoJ’s thinking about how to improve regulation must be complete before it is too late for consumers.”

An MoJ spokesman says: “We plan to consult on further tightening up the rules used to regulate claim companies.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This could be good news provided they are extremely strict with their conduct and make cold calling by phone calls, texts, emails and any other form of proactive methods of communications. They alos need to ensure that they make these companies pay £500 minimum to the defendent company on submission of each claim which is only refundable if the CMC wiins its client’s case. If they lose then the CMC loses the payment. They also need to impose a heafty fine for submitting false or fraudulant claims. The same fine should apply to individuals who also try committing fraud. All fines payable to MoJ to help their funding.I imagine the MoJ will simply use the usual soft touch of creating a code of practice that wont be worth the paper its printed on or something equally useless. CMC’s using sharp practice or dodgey methods need closed down.

  2. Exasperated Me 11th May 2012 at 9:21 am

    I’m sick and tired of spam, telephone calls to a TPS registered line, TV adverts and the rest of their garbage.

    Unfortunately the reason they exist is not being addressed, is it?

  3. Victor Meldrew 11th May 2012 at 10:12 am

    If you mean the continual failings of the FSA then you are right.

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