The government recognises that many consumers have not had a fair deal when using the services of intermediaries to claim compensation. To deal with this the Government has passed the Compensation Act, which provides for the regulation of companies and individuals that provide claims management services. It is an offence to provide claims management services without authorisation, unless exempted. Authorised businesses must comply with a strict code of conduct covering -
- Advertising and marketing.
- Taking on business.
- Representing a client.
- Handling client money.
- Handling complaints.
The legislation covers claims in respect of –
- Personal injury.
- Criminal injuries compensation.
- Employment matters.
- Housing disrepair.
- Financial products.
- Industrial injury disablement benefits.
You will be able to check if a business is authorised by using a search facility on this website.
Businesses must comply with rules on complaints handling. If you are dissatisfied with the way that a business has handled your complaint you can ask the Regulator to review your case. A leaflet setting out the complaints procedure provides guidance on the issue.
On 27 July the Office of Fair Trading announced that a test case on bank charges is being referred to the High Court. The Financial Ombudsman Service has announced that pending the outcome of the case it has put its own work on hold; a similar response is expected from the county courts. This means that where a consumer has made a complaint through a claims management company then no further action is likely to be taken on the complaint until the test case is settled. Claims management businesses are being reminded that they must act in accordance with the contract that they have with clients. In many cases this will mean the claims management company putting the case on hold until the test case is settled. Claims management companies are being advised to communicate directly with their clients when they have considered the implications of the OFT announcement on their contracts.
More details of the effect of the OFT announcement are given in a Financial Ombudsman Service press release which can be found in the Claims in respect of bank charges guidance note.
The following publications and links provide you with useful advice about claiming compensation.
If you need advice on your consumer rights, you can contact Consumer Direct. You will find it helpful to have looked at the following publications first.
The Advice Services Alliance publication Claiming Compensation covers all forms of compensation.
The Criminal Injuries Compensation Authority pays compensation to people who have been the victim of violent crime. The DirectGov website provides further information on how to make a claim.
The Advisory, Conciliation and Arbitration Service provides free up-to-date information and general independent advice on employment matters on its website. Aternatively, you may wish to consult the DirectGov website.
The Housing Ombudsman Service deals with complaints about shortcomings in the way homes are managed by social housing and some other landlords (but not local authorities).
For claims in respect of financial products or services -
Information on industrial injuries benefits is available on the DirectGov website.