Regulators crackdown on solicitors taking claims management cases

Wed, 05 Aug 2009

Solicitors have been cautioned by the Claims Management Regulator at the Ministry of Justice by issuing a Regulators Warning about accepting business from claims management businesses that may have resulted from clients being cold called.

Since the onset of the recession, Ministry of Justice figures show that the number of claims management companies has almost trebled from 951 in 2007 to 2,928 in May 2009.

A spokesperson from the regulator said, "We are aware that some businesses have been cold calling consumers and then referring their claims to a solicitor ."

Although the regulator has targeted companies that make misleading advertising statements, and has suspended and cancelled permission of many claims management companies from trading, the Ministry of Justice is now concentrating on solicitors to stop unscrupulous practices in this sector.

Non-compliance with the regulators rules will lead to enforcement action being taken against the business.

The Solicitors Regulation Authority rules about referral arrangements state that there should not be any financial arrangements between the solicitor and the introducer as a result of an unsolicited face-to-face or a cold-call telephone conversation.
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