Alan Wardle said he felt there was “clear cross-party support” for an outlawing of the tactic after the Financial Claims and Guidance Bill received a second reading in Parliament earlier this week.
Among its impacts, the legislation would pass the regulation of CMCs from the Ministry of Justice to the Financial Conduct Authority and – after an amendment previously added in the House of Lords – would include powers to implement a ban on CMCs making unsolicited contact with the public.
The bill now moves to the committee stage scheduled for February 1, a period traditionally offering an opportunity for potential changes to be made to its wording or for new clauses to be added.
Wardle told TTG: “It was great to hear a number of MPs making direct reference to cold-calling and how it is impacting false sickness claims.
“Now we need to see how the amendment is worded and how it will actually work in practice, but the general mood is very positive.”
During the reading, Esther McVey, secretary of state for work and pensions, said there had been “evidence of malpractice” in the claims management sector in recent years in the form of “disproportionate fees, nuisance calls, poor service and the encouragement of fraudulent claims”.
“A number of companies continue to act disreputably so it is only right that the government continue to take steps to further regulate the sector,” she added.
