MoJ to boost its supervision of firms

The Ministry of Justice has committed to improving its supervision of claim management companies.

The pledge followed a meeting last week at the MoJ between Labour peer Roy Kennedy, Which? and justice ministers Lord McNally and Jonathan Djanogly to look at what could be done to tighten up the regulation of claims firms.

Kennedy says McNally and Djanogly revealed that the regulation of claims firms will remain with the MoJ, which is examining how to improve it.

The justice ministers also pledged to talk to Treasury financial secretary Mark Hoban about improvving the way banks handle compensation claims.

Kennedy says: “It is fine for claims firms’ regulation to stay at the MoJ as long as it is done properly. The MoJ’s thinking about how to improve regulation must be complete before it is too late for consumers.”

An MoJ spokesman says: “We plan to consult on tightening up the rules on claim companies.”