New CMC Ombudsman

[EXC]

The Legal Ombudsman (LeO) is to extend it's jurisdiction to deal with complaints about claims management companies from next year.

Announcement http://www.legalombudsman.org.uk/dow...nouncement.pdf

BBC news article http://www.bbc.co.uk/news/business-19396068

This is great news for consumers and unlike the FOS, LeO currently functions with no caseload backlog and complaints are resolved in 3 months.

I wonder how long it'll be before new CMCs spring up that re-claim from other CMCs?

[enaid]

Re: New CMC Ombudsman

Brilliant news indeed, as you say there is no backlog at the mo,

'Claims firms have been regulated by the MoJ and its CMRU since 2007.
In that time, more than 700 outfits have been banned or closed down by the regulator.
There are still about 3,000 such firms in existence in England and Wales, typically authorised to run claims for personal injury compensation.'

In the meantime I think they should be having a very close look at the remaining 3,000 firms to see if they are fit for purpose. Also have a much firmer vetting process for new firms setting up.As we all know the MOJ was being paid by the firms they authorised so not much incentive there to be picky.
Still great news and I am sure if they can get the cold calling stopped millions would be very grateful.

[EXC]

Re: New CMC Ombudsman

Brilliant news indeed, as you say there is no backlog at the mo,

Yes we were told that at the meet last week by the new Deputy Head of Claims Management Regulation who untl then worked at the Legal Ombudsman.

LeO works like the FOS, it's funded by levies on the industry (which are yet to be set for CMCs) and for each case taken on LeO charges the CMC £400.

[TUTTSI]

Re: New CMC Ombudsman

I have stickied this thread as it has the anouncement that we have beeen waiting for following our meeting with the MOJ.

28 August 2012 Last updated at 10:47 Share this page

• Claims management firms face tougher rules
  
  Claims firms advertise widely, exhorting people to use their services to claim compensation
  Continue reading the main story Consumer Rights
  
  
• The best way to complain
• Does anything affect your statutory rights?
• How do cashback websites work?
• Explaining the ways to complain

People who are let down by claims management companies (CMCs) will be able to go to the Legal Ombudsman.
The Ombudsman has the legal power to award compensation to consumers if appropriate.
Claims firms have been blamed for stoking up thousands of bogus claims against banks for the mis-selling of payment protection insurance (PPI).
The government has announced the change as part of a wider attack on rogue claims firms.
The chief Legal Ombudsman, Adam Sampson, said: "This is great news for the public and consumers as we have significant powers of redress to help protect them."
"We are confident we can support the claims management regulator to improve standards across the industry."
The Ombudsman will take over dealing with complaints about individual CMCs from the Ministry of Justice's (MoJ) Claims Management Regulation Unit (CMRU) in 2013.
The MoJ does not have the power to award compensation.
Last week, the MoJ proposed that CMCs in England and Wales should have to use signed written contracts with their clients before they could charge fees.
Richard Lloyd, executive director of Which? welcomed the new rules but said the government should do more.
"We want a ban on upfront fees and cold calling, and for CMCs to be required to publish online all of their terms and conditions, fees and charges," he said.
"Far too often consumers are being ripped off by unscrupulous CMCs, when they can easily reclaim the money by themselves for free."
Thriving industry CMCs advertise widely on TV, newspapers and the internet, encouraging people to sue for personal injury compensation, and for other losses.
Continue reading the main story “Start Quote

We want consumers to be better protected by making the terms of any contract clearer”

End Quote Kevin Rousell MoJ
Some firms use improper cold-calling, by phone or text, to drum up clients.
In the past year, the banking industry's exposure to millions of claims for the past mis-selling of PPI policies has proved lucrative for the claims firms, who have encouraged tens of thousands of people to use their services, for a charge,
However, individuals can make a PPI claim themselves for nothing.
The MoJ revealed last week that the "vast majority" of complaints it received from consumers related to CMCs which offered to run claims against financial services firms, with PPI being the standout example.
About three quarters of complaints were about CMCs specialising in PPI, most of which came from between 15 to 20 firms.


Head of policy at the Legal Ombudsman Sam Berrisford: "We will be able to offer redress to people who have had poor service"

The MoJ acknowledged that these businesses were not necessarily typical of the wider industry.
But the authorities want to ensure the whole claims industry will be run under much tougher rules within the next year.
"Time and time again we see examples of consumers who have inadvertently agreed to a contract with a CMC without a written contract in place," said Kevin Rousell, head of claims management regulation at the MoJ.
Further changes Claims firms have been regulated by the MoJ and its CMRU since 2007.
In that time, more than 700 outfits have been banned or closed down by the regulator.
There are still about 3,000 such firms in existence in England and Wales, typically authorised to run claims for personal injury compensation.
Among the other changes being proposed, claims firms will also no longer be able to state they are regulated by the MoJ - only by the CMRU.
This is to stop clients being misled into thinking a firm is endorsed by the ministry.
The CMC firms will also have to tell their clients if they are suspended from business, or have had their authorisation altered.