I am writing to respond to John Holtom’s letter last week. Banning claims management companies would return us to the position we were in before the Ministry of Justice launched the regulation of claims management companies (CMCs) in 2007 – where CMCs could get away with cold-calling, giving misleading advice and the unfair treatment of consumers.
Closing the MoJ’s claims management company department, scrapping the claims management regulations and banning referral fees will not stop the compensation culture. Mr Holtom’s gripe appears to be the fact that CMCs charge firms for their services and, if Lord Young banned referral fees, people would go direct to firms like his and save his practice money.
Why not let CMCs operate within the rules? Then those that do not can meet the same fate as the 200-odd companies that have been struck down by Kevin Rousell, head of claims management regulation.
Kally Sahota, solicitor and director, Select Claims Ltd