Claims Management Companies: Unwanted Text Messages

Lord Skelmersdale Excerpts

Monday 5th November 2012 Lords Chamber

[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.

[Lord Skelmersdale]

My Lords, the Minister’s offer to put the letter in the Library is, of course, of great interest to Members of this House. However, there is much wider interest in this matter. May I encourage him to consider putting the letter in Hansard so that it can then get on to the internet and be much more widely read?

[Lord McNally]

I am not sure how easy it is to put it into Hansard, but what I can put into Hansard is the general advice on this matter, which is that customers should never use these firms. It is simple to make claims yourself and there is a template and letter on the Which? website. However, these claims companies have at least enabled financially less confident consumers to seek redress. I pay tribute to the noble Lord, Lord Kennedy, for his assiduity in pursuing these matters. I should also point out that the consortium of concerned bodies to which I referred has produced a very helpful pamphlet as a consumer guide entitled Nuisance Calls and Messages, which is supported by 11 bodies, which may be a clue as to why it is difficult to find a solution to this problem.