Claims management companies (CMCs) are a relatively new addition to the landscape of litigation in the UK, but their presence has been strongly felt, both by the market and by the media, where, rightly or wrongly, many have earned a reputation for unscrupulous practice. In the event you have suffered loss as a result of CMC negligence, it may be possible to make a professional negligence claim against the claims management company in question.
What are claims management companies (CMCs)
Claims management companies, also known as claims managers, claims handlers, claims assessors and no win, no fee companies, are types of business that have been set up with a view to helping people claim compensation.
Some CMCs have a broad range of specialisms and others specialise in particular types of cases. The most common type of claims dealt with by CMCs relate to the following:
- Personal injury
- Mis-sold financial products
- Payment protection insurance (PPI)
- Endowment mortgages and investments
- Gender pay disputes
Under the Compensation Act 2006, all claims management companies that offer to help people with the above types of claims must be authorised to do so by the Claims Management Regulator (although some strict exemptions apply). Furthermore, all should be registered with the Ministry of Justice.
Complaints against CMCs
Every CMC in England and Wales is obliged to have a complaints procedure. If you make a complaint but receive an inadequate response or fail to achieve redress, you can then register a complaint with the relevant body. More information about CMC complaints can be found here .
Negligence claims against claims management companies
There are very few, if any, cases where it is necessary to employ the services of a CMC. For example, in 2011 the Financial Services Ombudsman recommended that consumers contact the independent arbitrator directly rather that use "misleading" claims management companies.
However, if you have used a CMC and believe that you have suffered financial loss as a result of its negligence, it may be possible to make a negligence claim against the claims management company.
Healys professional negligence solicitors are based in offices in Brighton and London and provide professional and trustworthy advice to benefit those who may be considering making a professional negligence claim against a claims management company .
To speak to a partner call our offices on 0207 7822 4106 or send us an email.