New regulation for claims management companies
Claims management companies face regulation by a new system administered by the Claims Management Regulation Monitoring and Compliance Unit (CMRMCU). The new regulation was introduced as a result of concerns over the number of unscrupulous companies operating in the endowment mortgage compensation sector. Some were taking as much as 30 per cent of their clients’ compensation payments even though much of the paperwork was completed by the policyholders themselves. Clients will now have to be informed they they can submit their mortgage endowment claim to the ombudsman for free. Another concern voiced by the CMRMCU was that many companies were making exaggerated statements on their websites.
Consumers chhosing to use claims management companies will now be able to see if they are authorised by checking with the CMRMCU.
