The Information Commissioner's Office is investigating claims that motor insurers have been selling client details to personal injury laws.
The investigation follows complaints including one from former Justice Secretary and current MP Jack Straw. He argued that such behavior was unfairly increasing the number of personal injury claims and thus driving up premiums.
The issue involves insurers who contact claims firms with details of customers who are involved in a crash, receiving a referral fee for doing so.
At the moment that isn't a crime in itself, though not telling customers about the practice and detailing who information will be passed on to could breach data protection regulations.
However, the Association of British Insurers is demanding that selling details in return for a fee be outlawed completely. It says it disagrees with the activity but doesn't have the power to sanction member firms who do so.
