Government launches clampdown on nuisance calls from claims management companies

 
Sarah Spickernell
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The government wants to stop firms making nuisance calls to potential clients (Source: Getty)
The government is launching a review into how claims management companies (CMCs) are regulated, in an attempt to prevent them bombarding people with nuisance calls and text messages.
In a statement today, the Ministry of Justice said it was calling for evidence of how the companies are monitored and controlled.
Consumers, regulators, banks and insurers remain concerned that some CMCs continue to fuel speculative claims and create a significant social nuisance through unsolicited calls and texts, misleading marketing and high charges.
The review, which is due to be completed early next year, will consider how to strengthen regulatory measures already in place and also what new ones are required.
The government is also developing proposals to cap fees that regulated CMCs can charge clients in financial claims such as PPI, to make sure the companies can;t make massive profits from claims clients could easily make themselves. It says this is being done to make sure people aren't “taken advantage of”.
Justice minister Lord Faulks said:
The Government is taking action to make sure people aren’t having their time wasted or being taken advantage of by the greedy practices of some firms.
We want to be certain that we are doing all we can to get consumers a fairer deal and rid the industry of rogue behaviour.

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