MoJ to name and shame dodgy CMCs

The Ministry of Justice has created a web page that will make it easy for consumers to find out if the claims management company they are thinking of using is under investigation.

The claims regulation site will from today name the CMCs that have had action taken against them, while those currently under investigation will be named from next week.

The site will also detail exactly which rules the CMCs have breached and the reasons for the action being taken by the claims management regulator.

“Consumers can sometimes unknowingly sign-up with a CMC that may be under investigation by my unit,” said head of claims management regulation Kevin Rousell.

“Creating an online list that names CMCs being investigated will ensure consumers know exactly what action is being taken and the reason for it. It will also give consumers peace of mind that their complaints are being acted upon.

“Publishing all enforcement action will send a clear message to the industry that we will not tolerate firms that break the rules.

“This is part of ongoing work to drive malpractice out of the industry and improve the reputation for the vast majority of CMCs that do follow the rules.”

Claims Standards Council policy director Andy Wigmore said the move was a “good scare tactic”.

“Going public on the rule breakers and those behind them gives people sight of who to avoid and who not to work with. Hopefully it will push a few more bad companies to the wall.”

However, he warned that some named CMCs “won’t care as they consistently break the rules regardless”.

More than 900 CMCs have had their licenses revoked or left the sector after enforcement action since regulation began in 2007. About 2,600 such firms are licensed to provide claims management services, with about 1,700 of those licensed for personal injury claims and 1,150 for financial claims.