Legal Ombudsman to clamp down on CMCs

clock

Claims management companies (CMCs) may have to pay compensation to customers they have mistreated under government proposals to bring them within the remit of the Legal Ombudsman.

The Ministry Of Justice (MoJ) will today announce it is handing over the responsibility of regulating CMCs to the Legal Ombudsman from next year, the Financial Times reports. At present, the MoJ regulates CMCs but cannot order them to compensate customers. However, the Legal Ombudsman would be able to order payouts of up to £30,000 to consumers who had been cheated by CMCs, and officials are considering increasing the maximum compensation limit to £50,000. Chief legal ombudsman Adam Sampson said: "This is great news for the public and consumers as we have significant powers of redr...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

'Danger' for advisers who think poor conduct is not relevant to them

'Danger' for advisers who think poor conduct is not relevant to them

‘You cannot rely on people deciding what to do in the moment’

Hope Coumbe
clock 28 March 2024 • 1 min read
Advisers on 'dangerous ground' if they take tick-box regulation approach

Advisers on 'dangerous ground' if they take tick-box regulation approach

‘They should embrace the spirit in which the regulation has been created’

Isabel Baxter
clock 27 March 2024 • 1 min read
FCA enforcement to become 'assertive, proactive and intrusive'

FCA enforcement to become 'assertive, proactive and intrusive'

‘You can expect the regulator to take robust action where needed’

Isabel Baxter
clock 29 February 2024 • 2 min read