AIFA demands regulation of claims firms
The call for regulation followed the release of the Ministry of Justice consultation paper “Claims Management Regulation: Amendments to the Conduct of Authorised Persons Rules”.
Chris Hannant, policy director at AIFA, said: “The real problem within the claims management industry is not that the rules are wrong, it’s the lack of enforcement.
“The current regime is under resourced and ineffective. For example, banned companies can often reappear in another guise shortly after being banned.”
He said: “We welcome the move for a full ban on claims management companies offering financial rewards or similar benefits as an inducement to make a claim.”
Hannant added that if regulation was not transferred to the Financial Conduct Authority the Ministry of Justice must be more proactive in monitoring and enforcing the companies’ compliance with the rules.