Rogue Claims Firms Face MOJ CrackdownAug 28, 2017
As the Ministry of Justice last week announced a major crackdown on the claims management industry, We Fight Any Claim has welcomed the news that 200 rogue claims firms were closed down by the regulatory body during the last year.
As part of an industry clean-up, the Ministry of Justice revoked 200 licenses of claims firms during 2013. The total number of claims management companies in existence is down by more than one thousand since its industry peak of 3,367 in 2011, to 2,254 firms in November 2013.
Justice Minister Shailesh Vara said:
“Continued action to remove licenses from companies with poor practices alongside forthcoming Claims Management Regulation reforms, proves just how much work is going on to get tough on companies that defy the rules and bombard the public with unwelcome calls and misleading information.”
Since it started regulating the industry in 2007, the MoJ has introduced rigorous rules and actively clamped down on bad practices including cold calling, misleading advertising and the banning of verbal contract agreements, resulting in the closure or suspension of those companies practising outside of the rules set in place by the regulatory body.
The MoJ’s Claims Management Regulation Unit, controls businesses handling personal injury compensation, financial service claims such as Payment Protection Insurance claims and employment matters amongst others.
Head of Communications here at We Fight Any Claim, Simon Evans added:
“As a Claims Management Company working within the rules and guidelines set by the Ministry of Justice, we welcome the news that 200 rogue firms have been closed down as a result of the regulatory body’s rigorous protocols.
“We strive to distinguish our services far above those companies who bring a bad name to the claims management industry and work hard to meet the expectations of our customers by offering a clear and transparent service, on a no-win no-fee basis.
“As the MoJ continues to crack down on unscrupulous claims firms, we hope that consumers will persevere, and not be deterred by those companies breaking regulations, in fighting to reclaim what is rightfully theirs, whether that is via the specialist services of a legitimate claims firm such as We Fight Any Claim, or independently”