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Detail of outcome
This is the government response following the consultation paper “The Legal Ombudsman and complaints about claims management companies” which was published on 7 May.
We have carefully considered all responses to the consultation. The overall response was mixed. However, as no unforeseen issues with the proposed fee framework or no new evidence or arguments on the impact of the fees was raised, we have decided to proceed with the fee framework as set out in the consultation paper.
As the timetable for the implementation of the Legal Ombudsman taking complaints about claims management companies has been slightly revised, revised fees have been calculated, and these are set out in Annex B of the response.
In August 2012 the government announced its intention for customers’ complaints about poor service provided by authorised claims management companies (CMCs) to be dealt with by the Legal Ombudsman. The Legal Ombudsman will provide a new avenue of redress for clients of claims management companies and will assist the Claims Management Regulator in driving out poor standards and practices in the market.
Once the Legal Ombudsman’s jurisdiction is extended to cover the authorised claims management industry, all authorised CMCs will automatically be covered by the scheme and will have certain obligations towards it.
This paper sets out for consultation proposals as to how the costs the Legal Ombudsman will incur in dealing with complaints about authorised CMCs may be recovered from the authorised claims management industry.
The consultation is aimed at persons authorised to provide claims management services in England and Wales under the Compensation Act 2006 and those CMCs and individuals considering making an application for authorisation.