Member Article

Extent of rogue claims firms revealed

The Ministry of Justice has shut down or warned 352 “rogue” claims companies over the past six months.

The Regulation Unit, which is part of the Ministry, has taken the action against claims firms that have ripped-off customers through misleading marketing, poor service and hidden charges.

Between April and November this year 209 companies have been shut down and had their licences removed, three have been suspended and 140 have been warned.

Justice Minister, Helen Grant said: “We will not tolerate claims management companies that rip off consumers and flout the rules. Having more than 350 claims management companies shut down, suspended or warned for bad practice by the Claims Management Regulation Unit shows we mean business.

“We have introduced a number of measures in the past year which will mean consumers are much better protected and which offer a route of complaint and compensation while sending a clear message to the minority who break the rules their tactics will not be tolerated.”

Head of the Claims Management Regulation Unit, Kevin Rousell, added: “We will continue to tackle bad practices by claims management companies and take action against those who break the rules.

“In the past five years we have shut down more than 900 claims management companies and are continuing to work with the Information Commissioner’s Office to ensure firms who break the law on unsolicited calls and texts are dealt with.”

This was posted in Bdaily's Members' News section by Tom Keighley .