Ian Austin – 2016 Parliamentary Question to the Ministry of Justice

The below Parliamentary question was asked by Ian Austin on 2016-10-20.

To ask the Secretary of State for Justice, what information her Department holds on the number of people who have paid more than 25 per cent of their financial claims compensation to the claims management company handling their claim in each of the last three years; and what steps her Department is taking to prevent those companies from taking commission of more than 24 per cent.

Sir Oliver Heald

Information on the number of people who have lost more than 25 per cent of their financial claims compensation to the claims management company (CMC) handling their claim is not held centrally.

Our priority is to protect consumers who choose to use CMCs. We have consulted on proposals to cap the level of fees that CMCs providing financial claims services can charge consumers. These proposals aim to help consumers get more of the compensation due to them. We are carefully considering the consultation responses and the Government will publish its response in due course.