Ministry of Justice
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Regulator shuts down 200th rogue claims firm
The 200th rogue claims management firm is now in the process of being closed by the Ministry of Justice.
The 200th case for the claims management regulation unit highlights the ongoing success of its efforts since it was launched in 2007 to protect customers from firms which breach rules and put their money at risk. This includes companies who offer to help people with personal injury compensation claims and with attempts to get their debts cancelled.
As the latest statistics were released the unit reaffirmed its determination to weed out firms whose actions harmed customers, including ongoing work to cut unwanted cold-calling in person, by phone and by text message and cracking down on misleading marketing, unfair upfront fees and “cash for crash” frauds.
Kevin Rousell, the head of the unit, said:
‘Many of these firms provide a valued service, helping people who might not otherwise be able to afford to have access to justice.
‘But there are some which mislead people or carry out various kinds of malpractice, deliberately or otherwise, and we are working hard to ensure they either bring their practices in line, or stop altogether.’
In the worst cases firms who had their authorisation cancelled were involved in fraud, while others were caught using misleading marketing and aggressive sales techniques.
The latest milestone follows the announcement in August 2009 that the 100th firm had been stopped from trading.
Claims management regulation website
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