For many years there have been complaints and concerns about the practices of Claims Management Companies but there will now be new standards introduced to remedy the culture of bad practice.
Say Goodbye to Verbal Contracts
Until now many Claims Management Companies have used verbal agreements as contracts between the company and the consumer. However, the new now state that there must be a written agreement and signature to be legally seen as a contract.
These changes are thought to give consumers more protection as without a written contract, no fee can be taken by the Claims Management Company.
What Changes Will Take Place?
In summer 2013 the following changes will take effect:
– All contracts must be in writing for a fee to be taken.
– Claims Management Companies must ‘refer to their regulatory status as being regulated by the claims regulator rather than the Ministry of Justice’.
– Consumers must be informed 14 days before enforcement if any suspension of or restriction will be imposed on the CMC.
– No CMC will be allowed to target vulnerable individuals with cash incentives through advertising.
How Will The Changes Affect Consumers?
These changes will affect approximately 3,000 Claims Management Companies and it is hoped that they will offer consumers much clearer contracts and protect more vulnerable individuals.
There have been countless examples of consumers unknowingly agreeing to a contract with a CMC but now, with the required written contract, consumers will have the necessary time to consider the contract and only enter into it knowingly.
Insure 4 A Day: Supporting Best Practice
The insurance and claims management industries are inextricably linked and here at Insure 4 a Day we fully support these changes to root out poor practice and offer increased protection to consumers. We will always adopt and support good practice in the Insurance industry and make our customers our top priority.
Unsurprisingly, our dedication to best practice and customer service is directly reflected in what our customers are saying about us. Take a look for yourself: click here to read our customer reviews.
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