Anti-cowboy unit to be unveiled

A unit fighting compensation cowboys officially opens in Staffordshire tomorrow. The Claims Management Monitoring and Compliance Unit is believed to be the first service run by a council, but operating nationally.

Its new office will be opened in Burton upon Trent by Bridget Prentice MP, Under Secretary of State, Minister of Justice.

It will be co-located in new offices which are also home to Staffordshire County Council's Community Services, which includes trading standards and registration services.

The Unit is responsible for regulating businesses which operate in the £275 million a year compensation industry under a contract with the Ministry of Justice (MOJ). New legislation means businesses operating in the industry need to be registered and adhere to a strict code of conduct.

So far almost 1,400 companies have applied for registration and they operate in the areas of personal injury; criminal injuries compensation; industrial injuries disablement benefit; endowment mis-selling and other financial products.

Susan Woodward, county council cabinet member for social care and health, said: "We are delighted to be operating this national service on behalf of the Ministry of Justice.

"This is a relatively new industry where efforts at self-regulation have clearly failed. The new Compensation Act lays out strict ethical guidelines these businesses must stay within, and this unit will make sure that happens."