PPI CMCs face fines

[EXC]

''Rogue PPI claim companies targeted by fines and toughened regulations''

''Claims firms which use information gathered by unsolicited calls and texts or who provide poor quality services will face large fines under law changes announced by the Government today.''

https://www.gov.uk/government/news/r...ed-regulations

[Amethyst]

Re: PPI CMCs face fines

1 The new fining power is included in an amendment to the Financial Services (Banking Reform) Bill. (which bit ? it's all just going over my head this morning)

2 The new Claims Management Regulator conduct rules will go out to consultation this week. Details will be available on the Claims Management Regulation pages

3 The CMR unit will also consult this week on increased fees for regulated firms, to support the strengthened regulatory regime.



4 The CMR unit has already toughened regulation this year through:

• A ban on firms taking fees from customers before a written contract has been agreed and signed. They can no longer take money based on a phone agreement.
• A ban on adverts which offer potential customers cash or gifts for bringing profitable claims to companies.
• An order that firms must inform clients within 14 days if enforcement action has been taken against them.
• Making more information available to the public about firms, including an online tool to check whether enforcement action has been taken against a company, or is ongoing.
• Increased intelligence sharing with the Financial Ombudsman Service (FOS) and Financial Conduct Authority (FCA), and amendments to rules to address shared issues.
• Supporting the Information Commissioners’ Office with its work to stop those who break the law with unsolicited calls and texts to advertise for business.

5 The sharp decline in claims firm this year follows changes to the law around no-win, no-fee deals in April 2013, including a ban on the “referral fees” which used to be paid between lawyers, claims firms and others for profitable claims.

Justice minister Shailesh Vara said: “We will not tolerate companies which waste hardworking people’s time and money through their own laziness, incompetence or frankly dubious practices. We are already making sure rogue companies are shut down – and now we are ensuring those who are wasting everyone’s time will pay for it.”

Financial Secretary to the Treasury, Sajid Javid, added: “These new rules will put PPI claims pests in their place. Cold call companies that bother the public will now have one less reason to do so. This will also help free up the banks to pay legitimate claims more quickly.”

[enaid]

Re: PPI CMCs face fines

Not bad going really, how many years is it? 5 maybe since these parasites flourished and thousands were ripped off. Still any news is good news on this subject, lets just hope they can do and will do what they say they can.

[EXC]

Re: PPI CMCs face fines

1 The new fining power is included in an amendment to the Financial Services (Banking Reform) Bill. (which bit ? it's all just going over my head this morning)

Yep there's about 8 zillion pages.

I'll call their press office to find out.

In fact much of the press release is a bit of a joke, judging by the number of typos in it.

[EXC]

Re: PPI CMCs face fines

Here it is towards the bottom of the page under 'Before clause 121' http://www.publications.parliament.u...nd/am054-c.htm

The MOJ will be publishing a consultation on the maximum fine and other new rules tomorrow.

[Amethyst]

Re: PPI CMCs face fines

Nice one, thanks EXC, I'd never have found that.

Before Clause 121
LORD DEIGHTON


Insert the following new Clause—

“Power to impose penalties on persons providing claims management services

(1) The Schedule to the Compensation Act 2006 (claims management
regulations) is amended as follows.

(2) In paragraph 8 (rules about conduct of authorised persons), in sub-
paragraph (2)(b), after sub-paragraph (i) insert—

“(ia) provision enabling the Regulator to require an
authorised person to pay a penalty;”.

(3) In paragraph 9 (codes of practice about conduct of authorised persons), in
sub-paragraph (2)(b), after sub-paragraph (i) insert—

“(ia) enable the Regulator to require an authorised
person to pay a penalty;”.

(4) In paragraph 10 (complaints about conduct of authorised persons), after
sub-paragraph (2) insert—

“(3) Regulations under sub-paragraph (1) may enable the Regulator
to require an authorised person to pay a penalty.”

(5) In paragraph 11 (requirement to have indemnity insurance), in sub-
paragraph (2)(b), after “Regulator” insert “to require the payment of a
penalty by an authorised person or”.

(6) In paragraph 14 (enforcement), in sub-paragraph (4), for the words from
“impose” to “authorisation” substitute “require an authorised person to
pay a penalty, or to impose conditions on, suspend or cancel a person’s
authorisation,”.

(7) After paragraph 15 insert—

“Penalties: supplementary provision

16 (1) This paragraph applies in any case where regulations include
provision enabling the Regulator to require an authorised person
to pay a penalty.

(2) The regulations—

(a) shall include provision about how the Regulator is to
determine the amount of a penalty, and

(b) may, in particular, include provision specifying a
minimum or maximum amount.

(3) The regulations—

(a) shall provide for income from penalties imposed by the
Regulator to be paid into the Consolidated Fund, but

(b) may provide that such income is to be paid into the
Consolidated Fund after the deduction of costs incurred
by the Regulator in collecting, or enforcing the payment
of, such penalties.

(4) The regulations may also include, in particular—

(a) provision for a penalty imposed by the Regulator to be
enforced as a debt;

(b) provision specifying conditions that must be met before
any action to enforce a penalty may be taken.”

(8) In section 13 of the Compensation Act 2006 (appeals and references to
Tribunal)—

(a) in subsection (1), omit the “or” at the end of paragraph (d) and after
paragraph (e) insert “, or

(f) imposes a penalty on the person.”;

(b) after subsection (1) insert—

“(1A) A person who is appealing to the Tribunal against a decision
to impose a penalty may appeal against—

(a) the imposition of the penalty,

(b) the amount of the penalty, or

(c) any date by which the penalty, or any part of it, is
required to be paid.”;

(c) in subsection (3), after paragraph (d) insert—

“(da) may require a person to pay a penalty (which may
be of a different amount from that of any penalty
imposed by the Regulator);

(db) may vary any date by which a penalty, or any part of
a penalty, is required to be paid;”.”