The Claims Management Regulator (CMR) is set to introduce a number of changes. The Claims Management Regulator (CMR) is set to introduce a number of changes in response to consumer concerns that bad practice by some Claims Management Companies (CMCs) continues to plague the industry. It will see an end to all verbal contract arrangements between consumers and CMCs, and the enforcement of written contracts before any fee can be taken. The introduction of new rules is the next step in the CMR’s push to crack down on bad practice by some CMCs. Coming into force this summer the new rules will mean that CMCs must:

• agree contracts in writing with their clients, before any fees can be taken;
• refer to their regulatory status as being regulated by the claims management regulator - rather than the Ministry of Justice which till now could be misconstrued as an endorsement; and
• inform clients if they are suspended or restrictions imposed on their business within 14 days of the enforcement action being taken.

Head of Claims Management Regulation, Kevin Rousell said:
“Time and time again we see examples of consumers who have inadvertently agreed to a contract with a CMC without a written contract in place.".......Read more here