Claims Management Companies: Unwanted Text Messages

Debate between Baroness Scott of Needham Market and Lord McNally

Monday 5th November 2012 Lords Chamber

[Lord McNally]

I agree; I know what absolute anger this matter causes. It sometimes raises a groan when Ministers announce the following, but a cross-industry working group has been set up led by the Direct Marketing Association and including the MoJ’s claims management regulator, the ICO, Ofcom, the Telephone Preference Service, the OFT and the Advertising Standards Authority. They are looking across the piece at what is undoubtedly a nuisance.

[Baroness Scott of Needham Market]

My Lords, I am sure the House is reassured to know that it takes so many people not to be able to do anything about this problem. Does my noble friend agree with me that the real problem here is the routine selling on of our personal data—our mobile phone numbers and our e-mail addresses—and that we might avoid this problem if we dealt with that and had severe punishments for breach of data protection?

[Lord McNally]

I thank my noble friend for that question. She is right. However, from April 2013, claims management companies will be banned from receiving referral fees in personal injury cases and from offering financial rewards or similar benefits as an inducement to make a claim. We are trying to make sure that we do not block legitimate activity but that we comb out and stop those who are causing a nuisance and the rogue traders. I am afraid that a number of regulators need to come together in this area to get effective action.