Delyn MP David Hanson has welcomed the Government’s first annual report on claims management regulation, which says that better regulation has significantly reduced cold calling in person, which includes the practice of ‘clipboarding’ – knocking on doors and aggressively approaching people in shopping centres. Unauthorised advertising and marketing in hospitals have also been almost entirely removed.
The Compensation Act 2006 received Royal Assent on 25 July 2006. Part 2 of the Act establishes a statutory framework for the regulation of claims management services. It is now prohibited to provide the regulated services unless authorised or exempt. The Regulator has powers under the Act to take action against persons suspected of providing regulated services without authorisation, and against authorised persons suspected of breaching the rules or unprofessional conduct.
Once authorised, businesses will have to comply with strict rules of conduct including:
* a prohibition on cold calling in person;
* a prohibition on high pressure selling;
* transparent contracts;
* disclosure of referral fees, and
* provide a comprehensive complaints procedure.
David Hanson said:
“The regulation has put in place vital safeguards for consumers in Delyn when using the services of claims management companies and is raising standards across the industry.
“The new rules that claim managers must now follow have cleaned up the industry. Consumers can have more confidence that they will be dealt with fairly when seeking to make a claim.”