Justice minister Jonathan Djanogly has announced that claims management companies (CMCs) will be banned from offering cash or gifts to entice injured people to use their services.

The announcement in a Ministry of Justice (MoJ) press release coincided with publication of the Claims Management Regulation Unit’s annual report.

“I am pleased to announce we are now introducing a complete ban on inducement advertising for this industry. No longer will CMCs be able to target consumers through advertisements which offer vulnerable individuals a cash incentive for signing up to use their services,”Mr Djanogly said.

Although no further details have been released by the MoJ, it has been reported that the ban will take effect from April 2013.

To read the MoJ’s press release in full, click here.