§ Viscount Goschenasked Her Majesty's Government:
What regulatory arrangements govern the operation of personal injury claims management companies. [HL1196]
§ The Parliamentary Secretary, Lord Chancellor's Department (Baroness Scotland of Asthal)Those who provide the services which claims management companies organise are regulated by a range of bodies, including the Law Society, the General Council of the Bar, the Financial Services Authority and the General Insurance Standards Council. The Government are currently undertaking a scoping study for a review of the regulatory framework for legal services which will consider whether the review should cover claims management activities.
§ Viscount Goschenasked Her Majesty's Government:
Whether they have any concerns about the business practices, and in particular the marketing techniques, used by personal injury claims management companies; and if so, what action they are taking to address those concerns. [HL1197]
§ Baroness Scotland of AsthalProvided claims management companies and similar organisations act responsibly and with probity they can expand access to justice for people with good claims. While improper approaches to vulnerable people must be a concern, it is of equal importance that people who may have been injured by others' negligence should have access to help in seeking compensation. If individuals are to enforce their rights they need to be aware of the ways in which they can enforce them. Marketing approaches, including advertising, provided it is not misleading or dishonest, assist in raising awareness.
The Government are keeping under review the emerging market and working with a range of organisations to encourage high and common standards in accident compensation. We would welcome the establishment of a single voice for the claims management sector, particularly one which encompasses common standards.