MoJ shuts down 200 claims firms

The Ministry of Justice has shut down more than 200 rogue claims management companies in the past six months as part of a crackdown which has also seen it act over unsolicited marketing practices.
The Claims Management Regulation Unit shut down 209 such firms between April and November this year, it said. Three more firms were suspended and a further 140 were warned.
The unit is also working with the UK’s data watchdog to tackle firms who break the law on unsolicited calls and texts.
Claims firm advertise widely on TV, newspapers and online, encouraging people to sue for personal injury compensation, and for other losses. Some also use cold-calling, by phone or text, to drum up clients.
Over the past year, the rise in payment protection insurance (PPI) policy misselling has proved lucrative for the claims firms, who have encouraged millions to use their services, for a charge, even though individuals can make a PPI claim themselves for nothing.
Claims Management Regulation Unit head Kevin Rousell said the division was working with the Information Commissioner’s Office to crack down on calls and texts.
“We will continue to tackle bad practices by claims management companies and take action against those who break the rules,” he said.
More than 900 claims companies have been shut down in the past five years, the Ministry of Justice said.
The latest crackdown comes ahead of government plans next year to give consumers more protection against rogue firms, such as making all businesses agree written contracts with customers before taking fees.
And from next year, consumers gain the right to be able to go to the Legal Ombudsman, which will have the power to award compensation to victims of rogue firms if appropriate.

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