The government has raised intentions to introduce a cold-calling ban, adding it to the title of parliamentary bill that will bring it about.
Cold-calling as been seen as an ugly side of a number of legal service providers, and a practice that was once endemic of small claims industries such as PPI claims.
The news comes as the Financial Guidance and Claims Bill has been amended to cap fees claims at 20%, as well as legal service providers being able to charge consumers for management services relating to PPI.
The bill has added additional information in brackets: “A bill to make provision establishing a new financial guidance body (including provision about cold-calling and a debt respite scheme); to make provision about the funding of debt advice in Scotland, Wales and Northern Ireland; and to make provision about the regulation of claims management services.”
The House of Commons has received the bill for consideration.
On personal injury, the government has decided to legislate for a cap in advance of the Financial Conduct Authority responsibility for claims management regulation, setting the cap at 20% of the claim value.
The intention is that the cap will be introduced two months after the bill receives Royal Assent which subject to parliamentary approval, is expected to be by March 2018.
Alongside the cap, the Claims Management Regulator is to introduce a series of further restrictions on what and how financial products CMCs can charge.
These include not charging fees prior to the conclusion of the claim, ensuring all charges are reasonable, and permitting the client to cancel a contract at any time. The new rules will come into effect on 1 April 2018.