Written question asked by Russell Brown (Labour) on Tuesday, 20 July 2010, in the House of Commons. It was due for an answer on Monday, 26 July 2010. It was answered by Jonathan Djanogly (Conservative) on Monday, 26 July 2010 on behalf of the Ministry of Justice.

Claims Standards Council: Codes of Practice

Question: To ask the Secretary of State for Justice for what reasons Kerobo's licence for claims management was suspended; what process his Department undertook before lifting that suspension; on what date that suspension was lifted; and if he will make a statement.

Answer: Businesses providing regulated claims management services must comply with strict conduct rules as a condition of their authorisation. The Claims Management Regulation Unit at the Ministry of Justice investigates any suspected breaches of the rules. Appropriate enforcement action is taken, in line with the statutory powers provided under the Compensation Act 2006 and the claims management regulation enforcement policy, against businesses that have failed to comply.The authorisation of Kerobo Claims Limited was suspended because the business had breached the conduct rules. Suspension is a measure that prohibits a business from providing regulated services for a defined period, during which the breaches may be addressed. Where a business is able to take steps to comply with the rules, its authorisation may be reinstated. Kerobo agreed to a number of strict undertakings, which it has published on its website, and suspension was lifted on 8 July 2010. Those undertakings prevent the business from taking on new clients but enable it to complete existing claims for those clients who wish to proceed and to make refunds to customers to whom they are due.

Secondary information