Claims Management Companies

This page contains information on - 

• The legal requirement for claims management companies to be authorised
• Joint OFT/MoJ warning issued in August 2008

The legal requirement for CMCs to be authorised 

The Compensation Act 2006 made provision for Regulations (SI 2006 No 3322)  governing the authorisation and operation of claims management companies (CMCs). All CMCs are required to be authorised by the Claims Management Services Regulator, details of which are available on the Ministry of Justice's website.

Regulation 22 makes provision for the publication of Rules of Conduct with which CMCs are required to comply.

Any concerns about whether a CMC is properly authorised, or whether its activities are compliant with the Rules of Conduct, should be referred to the regulator.

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Joint OFT/MoJ warning issued in August 2008 

In August 2008 the Office of Fair Trading and Ministry of Justice issued a joint press release warning consumers to "think carefully" before using the services of claims management companies. The release advised consumers to seek independent advice before using such companies - sometimes after paying fairly large up-front fees - and lists a number of organisations which provide free advice.

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