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Claims Handlers

Volume 457: debated on Tuesday 6 March 2007

All authorised businesses will be required to comply with the regulatory rules by 6 April 2007. The regulatory regime will come fully into force in late April 2007, when we plan to commence the statutory prohibition on providing regulated claims management services without authorisation.

Two claims handlers are responding to my constituents’ consumer complaints by sending them threatening solicitors’ letters. What will be the process through which my constituents can object to the inclusion of those claims handlers on the official register?

When the regulator assesses applications, he will be able to take into account the views of anyone who has concerns about a particular claims handler. Comprehensive and detailed questions will be asked of all people who apply for authorisation. I recommend that my hon. Friend and his constituents make the regulator aware of the concerns that he has raised on several occasions.

The answer that the Minister has just given will be of some relief to people who have been approached by these claims handlers, who have not merely handled their claims inadequately and charged them money when they should not have done, but transferred their claims by selling them on, often to poorly qualified solicitors who have done an extraordinarily poor job of handling claims for mining injuries. I hope that this process will be able to put that matter to bed. Does the Minister share my hope?

I certainly do share my hon. Friend’s hope. There have been recent incidents of claims handlers touting for business with a variety of people, including physiotherapists, and we are ensuring that we get the message across that claims handlers should be very careful before acting in such a way. I hope that hon. Members on both sides of the House will ensure that their constituents are aware that the Compensation Act 2006 will be coming into force in a month. I should also say that people will get their claims dealt with more quickly and successfully if they proceed with them themselves, rather than by going through a middle agent.

What discussions has my hon. Friend had with the regulator about the inclusion on the register of organisations such as the Union of Democratic Mineworkers and the Durham area National Union of Mineworkers? They are acting wholly as claims handlers and are still, in some cases, refusing to identify who has had money deducted and to repay that money. Will she speak to the regulator as a matter of urgency and ensure that he looks into those organisations in detail?

I am aware that the organisations to which my hon. Friend refers have both applied for authorisation, but although I can confirm that, I obviously cannot give any information on the progress of the applications that the regulator is assessing. However, if they were authorised, they would have to be listed in the same way as other organisations, and they would have to comply with all the regulations set down in the Act.