Consultation expected later in the summer
The Ministry of Justice (MoJ) is planning to put out a consultation on how it can tighten up its regulation of claims management companies (CMCs).
An MoJ spokesman confirmed the plans, though the ministry has not published official details of the consultation yet. The spokesman added that no date has been set for the consultation, but that it was unlikely to come in the next two months.
Kennedys Law practice development lawyer Debbie Newberry said: “It seems quite clear that the government are very focused on tackling whiplash claims. That is directly related to CMCs.
“I think that it’s all part of the overall desire to regulate and make sure that, in relation to referral fees, that the whole picture is tackled.”
The MoJ has two other consultations in the pipeline. One will be on setting up independent medical panels to assess whiplash claimants, and the other will be on raising the threshold of the small claims court.
Both were mentioned this month in the second insurance summit between the government and the insurance industry.