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Ministry of Justice / Claims Management Regulation Bulletins

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  • Ministry of Justice / Claims Management Regulation Bulletins

    Claims Management Regulation Bulletin – No 5 (March 2009)

    Financial Products and Services - Use of Agents
    We have noticed a substantial increase in the number of businesses using agents as a means of marketing their services. This practice, if not properly supervised by the authorised business, has the potential to cause consumer detriment and would constitute a breach of businesses conditions of authorisation.
    If you use or are planning to use agents as a means of marketing your services, then you must comply with the following:
    • There is a legally constituted relationship of agency between the authorised business and the agent. This agreement should be in writing.
    • Agents who advertise or otherwise seek out potential claimants must do so in the name of the authorised business only. Any person who advertises in their own name without authorisation would be committing an offence.
    • Agents must comply with all the rules an authorised business is subject to.
    • Authorised businesses will be held responsible for any rule breaches by agents purporting to be acting for them. Enforcement action will be taken against the authorised business.


    Potentially Unenforceable Consumer Credit Agreements (UCCA)
    Guidance on the use of misleading marketing was published in January 2009 and is available on our website.
    The Ministry of Justice and OFT issued a related Press Release on 17 February 2009 and was published on the Ministry of Justice website.
    Exempt Introducers
    Enquiries from traders suggest that there is some confusion concerning the exempt introducer status. In order for a person to be considered an exempt introducer, they must fulfil all of the following criteria:
    a) the referral of claims must be incidental to the introducer’s main business;
    b) the introducer provides no other regulated claims management service, which includes advertising the service, and advising on the merits of a potential claim
    c) of the cases that the introducer refers to such persons, he is paid, in money or money’s worth, for no more than 25 cases per calendar quarter; and
    d) where cases are referred to authorised persons the authorised persons accept responsibility for ensuring that he complies with these rules.
    Further guidance is available by contacting the Monitoring and Compliance Unit and in the ‘Who needs to be authorised under the Compensation Act 2006 Guidance Note’ available on our website.
    New Anonymous Reporting Hotline
    A new Claims Management Anonymous Reporting Hotline is now available. This telephone line has specifically been set up to allow businesses, consumers, individuals or other party’s to report details of alleged malpractice, fraudulent activity, rule breaches or poor service in confidence and anonymously.
    The number for this new line is 0333 200 0110. You will not be able to obtain advice, or request feedback via this number. You can still use the main number to the Monitoring and Compliance Unit to complain or report such instances, in confidence, where you wish to be contacted further in respect to your call.

    Telephone Cold calling
    There has been a recent increase in the telemarketing of regulated claims management services, i.e. telephone cold-calling for claims. Such telephone marketing is permitted provided it complies with other laws and rules on direct marketing. This is covered in the Marketing and Advertising Claims Management Service guidance note which was revised in November 2008.

    Businesses are not permitted to make any cold calls to consumers where the intention is to refer those consumers claims to a solicitor, these would typically be claims for Personal Injury and also some claims in relation to financial products and services, in particular UCCA. This would be a breach of the Conduct of Authorised Persons Rules (Client Specific Rules, Rule 8) as it would serve to put the solicitor in breach of rule 7 of the Solicitor’s Code of Conduct. We are scrutinising telemarketing arrangements and businesses should ensure that their records are sufficient to prove that their telemarketing is compliant.

    Claims Management Tribunal - Consultation
    The Claims Management Services Tribunal is scheduled to become part of the new Unified Tribunals Service in January 2010. New rules will be prepared to govern the proceedings of the new tribunal structure. A consultation on the proposed new rules was launched in February 2009. The Consultation papers are available to view on the Tribunals Service website.

    Amendment to Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975
    An informal consultation on amendment to the Rehabilitation of Offenders Act 1974 (Exceptions) Order 1975 to bring it in line with Compensation legislation has been published. This would enable the claims management regulator to request disclosure of all criminal convictions (including spent ones) of businesses applying for authorisation, and to have the right to take into account this information when considering applications for authorisation. Comments are requested by 13 March.

    Information Gateway between FSA and Claims Management Regulator – Consultation

    HM Treasury has published a consultation paper inviting views on proposed changes to the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001 to introduce an Information Gateway between the Financial Services Authority and the Claims Management Regulator. The purpose of the information gateway is to enable the sharing of information between the two regulators for regulatory functions.
    Bank Charges
    On 26 February 2009 the Court of Appeal issued a new ruling. Further details are available on the FSA and OFT websites.

    Accountants Report Form
    Rule 9 of the Client Account Rules 2006 requires authorised claims management businesses that operate client accounts to deliver an Accountant’s Report to the Regulator within six months of the end of each Accounting Period (Rule 9.2). The Accountants Report Form and Checklist were published on the website in November 2008.

    Compromise Agreements
    We have received enquiries about whom, and more importantly, who cannot represent clients in Compromise Agreements. An “Acceptable Compromise Agreement” is a legally binding agreement to accept compensation from an employer instead of pursuing a tribunal case. Only a solicitor, a designated trade union officer or a designated advice bureau worker, can sign such agreements. The conditions regulating compromise agreements are set out in section 203 of the Employment Rights Act 1996.

    Limitation Act 1980
    The Limitation Act specifies different periods for pursing legal claims. For example, actions for damages in most personal injury cases must be brought within three years of either the date when the cause of action accrued (usually when the damage is suffered), or within three years of the claimant’s ‘date of knowledge’, whichever is the later. There is discretion given to the court to disapply the limitation period in respect of claims for personal injuries when it considers it just and equitable to do so.
    Each claim is considered on its merits and the court will take into account the interests of both parties. With this is mind, businesses should always carefully consider the legal and cost merits of each individual case before advising their client whether to bring any such action.

    Claims Standards Council (CSC) May 2009 Conference
    The CSC is hosting a conference on 21 May 2009 to discuss claims process reform for personal injury claims. More details are available on the CSC website.
    Common Sense .... if in doubt, use it !

    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Find Solicitors offering fixed fees on our sister site - JustBeagle.com

  • #2
    Ministry of justice december 2011 - bulletin 13



    • #3
      Claims management regulation - june 12 bulletin 15



      • #4
        Ministry of justice - bulletin dec12

        BULLETIN 17 - DEC12



        Regulation fees paid by claims management companies

        This consultation invites views on the fees for applications for authorisation and annual fees for the regulation year 1 April 2013 to 31 March 2014 and initial views on a fees framework for complaints handling by the Legal Ombudsman.
        This consultation is primarily aimed at persons authorised to provide regulated claims management services in England & Wales under the Compensation Act 2006 and those businesses and individuals contemplating making an application for authorisation.

        Why We Are Consulting

        The claims management regulation system is a self-financing system, with applicant and authorised claims management companies meeting the costs of regulation through the payment of authorisation fees.
        The level of these fees is set in advance of the year to which they apply. They are calculated based on the number of new claims management companies predicted to apply for authorisation, the turnover of current authorised claims management companies together with the proportion of claims management companies expected to maintain their authorisations both in year and into the following year.
        This consultation sets out the proposed fees for the regulation year April 2013 to March 2014.
        A number of significant changes, which have the potential to greatly impact on the claims market, will take place in 2013 - 2014. These include the ban on referral fees in personal injury claims, a ban on offering inducements to make a claim, the growth of Alternative Business Structures, and the Government’s reforms to the costs of civil litigation.
        Each of these factors could lead to significant changes to the structure of the claims market and have been taken into account when considering future fees income.
        The Government will implement a ban on the payment and receipt of referral fees for personal injury claims in April 2013. Those claims management companies currently receiving referral fees for providing access to claimants in personal injury cases will no longer be able to operate in their current form.
        This could lead to a reduction in their income levels depending on their reliance on referral fees and whether they are in a position to restructure their business model.
        The ban could also mean fewer claims management companies applying for authorisation to provide regulated services in the personal injury sector, existing claims management companies leaving the market and an increase in unauthorised trading.
        A significant amount of fee revenue comes from the personal injury sector and any reduction of the sector will therefore, have an impact on total fee income. The costs of the primary compliance and enforcement functions of the Claims Management Regulator (the Regulator) will be ongoing.
        Continuing resource will be needed to further consumer protection and to meet the challenges posed by the financial products and services sector – in particular the payment protection insurance claims market, and to ensure compliance with the bans on referral fees and inducements and the policing of a potential increase in unauthorised trading.
        Therefore, we need to mitigate now against any contraction of the personal injury sector whilst ensuring that full regulatory costs are recovered and regulation remains adequately resourced.
        Complaint Handling by the Legal Ombudsman
        In August 2012 the Government announced its intention for the Legal Ombudsman to take on complaints about poor service received at the hands of claims management companies.
        The Legal Ombudsman will provide a new avenue of redress for clients of claims management companies and will assist the Regulator in driving out some of the poor standards and practices currently seen in the market.
        The independent complaint resolution service provided by the Legal Ombudsman is free to consumers, with the costs incurred met by the lawyers, and also in future authorised claims management companies.
        This consultation contains estimated costs that the Legal Ombudsman believes it will incur in providing this function for claims management companies. This consultation sets out preliminary proposals for how the costs of complaint handling might be recovered from authorised claims management companies.

        Related Information


        Related Documents


        • #5
          Moj advice on cancelled or suspended claims management companies


          This bulletin advises you on what to do in the event that your Claims management Company is Cancelled or suspended.


          • #6
            MOJ Business Bulletin 18 dated March 2013

            CMR business bulletins aim to highlight current developments and provide an update on issues that are of interest or affect claims management services. This bulletin includes important information about referral fees in personal injury cases, the offering of inducements to make a claim, annual regulation fees and advice about new claims areas.
            Referral fee ban
            From 1 April 2013 it will be a regulatory offence to pay and receive referral fees in personal injury cases. If you currently receive fees for referring personal injury (PI) cases to a solicitor you will be unable to continue with this practice after 1 April 2013. We have produced a "quick guide" to the referral fee ban for those businesses currently operating in or considering operating in the PI sector and have also provided answers to frequently asked questions – this and other information will be made available on our "referral fee ban" webpage (click here for details). This ban is one of a number of changes implemented by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 that affect claims services. Details of these "civil justice reforms" which include changes to payments in personal injury cases – can be found at: http://www.justice.gov.uk/test/civil-justice-reforms
            Inducement ban From 1 April 2013 you will not be able to offer any cash payments or similar benefits (e.g. shopping vouchers or other goods) to potential claimants as an inducement for making a claim. The amended rule will read: Client Specific Rule 6 (b) - In soliciting business through advertising, marketing and other means a business must not offer any cash payment or a similar benefit as an inducement for making a claim.
            The rule will apply to all authorised claims management companies. Therefore, if your business currently offers inducements to make a claim, you will no longer be able to do so from 1 April 2013 and should adjust your business processes as appropriate. All marketing literature, signs, displays and websites should be amended to comply with the rule.
            Conduct rules review - update Following the consultation exercise on proposed changes to the conduct rules, we are currently working through the relevant Government clearance processes. We intend to publish our response to the consultation shortly and, subject to the relevant clearance, we expect implementation of the proposed changes to follow in the summer. These changes will affect the following three main areas: • References to your regulatory status • Pre-contractual information and the contractual agreement process • Client updates and client notification of enforcement action Further details of the proposals can be found here: https://consult.justice.gov.uk/digital-communications/ cmr-rules-consultation-cp15-2012
            Call us on 0333 200 1320 or email
            business@claimsregulation.gov.uk www.justice.gov.uk/claims-regulation


            • #7
              MOJ BULLETIN Key Rule changes effective 8th July 2013



              • #8
                Re: MOJ BULLETIN Key Rule changes effective 8th July 2013

                https://www.gov.uk/government/public...mr-bulletin-31 - March 2017

                Common Sense .... if in doubt, use it !

                “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

                Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                Find Solicitors offering fixed fees on our sister site - JustBeagle.com


                • #9
                  Re: MOJ BULLETIN Key Rule changes effective 8th July 2013

                  https://www.gov.uk/government/public...mr-bulletin-32 - August 2017

                  This edition includes information and advice on direct marketing, identifying and protecting vulnerable clients, rules and guidance in relation to Plevin, and an update on the progress of the Financial Guidance and Claims Bill.
                  Compliance Update

                  1. Direct marketing

                  Tackling non-compliant direct marketing practices remains a key priority for the Claims Management Regulator (CMR). We have previously issued advice and guidance regarding this issue, however are still finding that many businesses are unable or unwilling to comply. As such, we have published supplementary guidance to provide clarification on our rules, and to set clear standards for businesses to adhere to. Failure to comply with this guidance may lead to enforcement action being taken against you.
                  2. Rules and guidance in relation to Plevin

                  In March 2017, the Financial Conduct Authority (FCA) announced that it was to introduce new rules and guidance on the handling of PPI complaints in light of the Supreme Court’s decision in Plevin v Paragon Personal Finance Limited (Plevin). In March 2017, the FCA announced final rules and guidance on handling PPI complaints. These will come into effect on 29 August 2017. Prior to commencement, we want to ensure that claims management companies (CMCs) understand the rules and expectations in handling cases relating to Plevin and have published supplementary guidance.
                  3. Misleading price indications

                  The purpose of displaying fees is to allow consumers to make an informed decision as to whether to use your services. We have found that some businesses are displaying their fees exclusive of VAT and may therefore be providing misleading price indications to consumers. To ensure transparency in the pricing of your services, please make sure that you refer to the Client Specific Rule (CSR) 2 of the Conduct of Authorised Persons Rules 2014 (CAPR) and 3.18 of the CAP code.
                  CSR 2 of the CAPR states:
                  All advertising, marketing and other soliciting of business must conform to the relevant code:
                  • The UK Code of Non-Broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code); or
                  • The UK Code of Broadcast Advertising (BCAP Code).

                  These codes are accessible at www.cap.org.uk/advertising-codes.aspx. For the purposes of this rule a business’s website shall be deemed to constitute advertising, and must comply with the CAP Code.
                  Rule 3.18 of the CAP Code states that when advertising:
                  Quoted prices must include non-optional taxes, duties, fees and charges that apply to all or most buyers. However, VAT-exclusive prices may be given if all those to whom the price claim is clearly addressed pay no VAT or can recover VAT. Such VAT-exclusive prices must be accompanied by a prominent statement of the amount or rate of VAT payable.
                  Quoting prices exclusive of VAT would put you in breach of CSR 2 of the CAPR and would also put you in breach of General Rule (GR) 5 of the CAPR which requires businesses to comply with Regulation 6 of The Consumer Protection from Unfair Trading Regulations 2008.
                  If VAT is charged you must state your fee inclusive of VAT.
                  4. Pre-submission checks reminder – no PPI and duplicate complaints

                  We have seen an increase in complaints about CMCs not gathering sufficient information from their clients in the first instance. There are still a large number of pre-submissions being made to lenders where the client has no relationship with the lender for the product in question.
                  We are particularly concerned about the increasing volume of duplicate claims being submitted to lenders where a claim has previously been made by a client against the same product.
                  Please familiarise yourself with the guidance previously issued on investigating and establishing the merits of a financial claim.
                  We will continue to monitor this matter closely. If you fail to demonstrate that you are seeking to gather sufficient information from your clients in the first instance, then we will consider taking enforcement action.
                  5. Identifying and protecting vulnerable clients

                  To assist CMCs in formulating procedures to identify and protect vulnerable clients, we recommend you refer to the Direct Marketing Association’s guidelines for call centres dealing with vulnerable clients. The advice within these guidelines remains relevant to most CMCs, including those that don’t operate a call centre. To ensure best practice, we would recommend reviewing your policy on a regular basis.
                  The Financial Conduct Authority has published a practitioners’ pack aimed at financial institutions; much of this content is relevant and useful for CMCs. The Law Society guidance on meeting the needs of vulnerable clients is more detailed and aimed at solicitors, but will assist some CMCs, particularly those that litigate on behalf of clients.
                  GR 2 (f) of the CAPR requires you to have appropriate procedures in place to identify and protect vulnerable consumers. Using these tools will help you create a policy tailored to the needs of your business and clients.
                  6. Transfer of business

                  If you are considering transferring your clients to or from another CMC, ceasing to trade, or changing contact details, please see our previously issued special bulletin which provides guidance around transferring or ending client relationships.
                  Other CMR news and updates

                  7. Financial Guidance and Claims Bill

                  The Financial Guidance and Claims Bill was introduced in the House of Lords in June, starting the legislative process of transferring responsibility for claims management regulation from the Ministry of Justice to the Financial Conduct Authority, and the establishment of a tougher regulatory framework than provided under the Compensation Act 2006. Second reading of the Bill took place on 5 July and received strong cross-party support. Committee stage will begin on 6 September 2017. The progress of the Bill can be followed on the Parliament website where you can sign up for email alerts.
                  8. Recent enforcement action

                  Read our latest report summarising the action taken against CMCs in breach of the rules during the last quarter.
                  9. Annual Report 2016-17

                  The Claims Management Regulation Annual Report 2016-17 has now been published. The report covers the main developments, achievements and progress made in claims management regulation over the last 12 months and sets out our priorities for the future.
                  10. The Legal Ombudsman professional learning course

                  The Legal Ombudsman is administering a course on ‘Remedies and learning from complaints for the claims management industry’ on 11 September 2017. This course will look at themes and trends seen by the Legal Ombudsman in their jurisdiction, including common complaints seen and how these can be prevented, contemporary issues faced by CMCs when handling complaints, and an update on their statistics. Please refer to the Legal Ombudsman website for more information and details on how to register your interest in attending.
                  11. Claims Management Regulation 10th Anniversary Publication

                  We have published a special report to celebrate the 10th anniversary of claims management regulation, highlighting the significant steps taken to clean-up the claims industry throughout this period.
                  This report covers the main developments, achievements and progress made in claims management regulation over the last 10 years. Highlights include:
                  • Timeline of key reforms
                  • Enforcement statistics and trends
                  • Action we’ve taken to protect consumers
                  • Quotes from key stakeholders
                  Common Sense .... if in doubt, use it !

                  “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

                  Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                  Find Solicitors offering fixed fees on our sister site - JustBeagle.com


                  • #10
                    Re: Ministry of Justice / Claims Management Regulation Bulletins

                    Just reading that MOJ 10 year report, I didn't realise BBA (and a load of other associations) are no longer and have morphed into UK Finance.

                    I like your pin shot
                    I keep it with your letter
                    Done up in blueprint blue
                    It sure looks good on you
                    And when you smile for the camera
                    I know I'll love you better

                    Then the shutter falls
                    You see it all in 3-D
                    It's your favorite foreign movie


                    Donald Jay Fagen


                    • #11
                      Re: Ministry of Justice / Claims Management Regulation Bulletins

                      Me neither - haven't really paid much attention to the BBA since the ''end'' of bank charges...

                      The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.

                      Material published by BBA prior to 1st July 2017 is still available on this website.

                      From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
                      NewTA Limited trading as UK Finance. Company number: 10250295.
                      Registered address: Pinners Hall, 105-108 Old Broad Street, London, EC2N 1EX
                      Common Sense .... if in doubt, use it !

                      “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

                      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                      Find Solicitors offering fixed fees on our sister site - JustBeagle.com





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