CMCs and law firms partner up in Alternative Business Structures

Published: 31/10/2011

Claim Management Companies (CMCs) are to seize upon the opportunities of Alternative Business Structures after agreeing to pre-contract deals with law firms.

Chairman of the Claims Standard Council (CSC), Darren Werth has stated how he is aware of several pre-contract Alternative Business Structures agreements:

“Across the industry you have companies that have expressed an interest in taking firms in-house. It is an exciting option to bring the law firm in-house – you can provide a day-to-day service and start with a blank sheet of paper. There are a number of people who have pre-contracts and are waiting for when the time is right.”

It is believed such a move would result in CMC’s becoming the advertising wing of the law firm. This could provide a successful workaround when the Ministry of Justice introduce a ban on referral fees in personal injury cases.

It is a move that is welcomed by Justice Minister, Jonathan Djanogly who believes the move would be of benefit to consumers. CMCs, which are currently regulated by the MoJ, would instead fall within the scope of the Solicitors Regulation Authority and thus offering a greater deal of protection for customers.

¹Law Society Gazette (Oct 2011)

Content correct at time of publication