The Upper Bann representative said:

“We have all received unsolicited calls from claim management companies (CMCs). These can include ‘have you been in an accident that wasn’t your fault?’, or ‘have you been injured in the workplace?’ They can be a real nuisance and can cause distress, certainly amongst our older population who whilst vulnerable are increasingly aware of scammers.

In England and Wales, these CMCs are regulated by the Financial Conduct Authority. That brings with it the requirement for companies to adhere to a wide range of regulatory protections, which ensure the consumer is not exploited or subject to any unfair or unscrupulous practices.

However, that protection is not in place in Northern Ireland, giving CMCs much more scope to engage in cold and nuisance calling, and to take large proportions of any compensation they may secure on behalf of clients who engage their services.

Added to this are concerns around the activities of some CMCs in exposing customers to large bills as a result of credit agreements signed. In some cases, even if the other party is at fault, if the CMC cannot recover costs from the other driver's insurer, under the terms of the credit agreement they can recoup the costs from the consumer. This can leave consumers facing hefty bills, totally unexpectedly, having engaged the CMC in good faith but not being made aware of the potential risks.

We need these loopholes closed as quickly as possible, to offer a greater veil of protection over Northern Ireland based consumers and to ensure all claim management companies are made to act in a responsible and ethical manner. I am making appropriate representation to Government on this matter and will be liaising with the Association of British Insurers to advance this issue.”