Between April and November of last year, the Ministry of Justice shut down over 200 compensation claims firms. They also suspended a further three and gave 140 more an official warning. This decisive action has highlighted the need for stricter regulations across the UK.
The firms that have been targeted by the ministry of justice regularly harass customers by phone or text encouraging them to sue for compensation. They also advertise extensively through newspapers, TV and the internet.
The issues with the mis-selling of payment protection insurance (PPI) policies over the last year have also added fuel to the fire. As claims firms clamber over each other to get people to use their services, usually for a fee, they conveniently neglect to inform their clients that they can make the compensation claim for free themselves.
The Head of the Claims Management Regulation Unit, Kevin Rousell, confirms they are on top of the problem and are working alongside the Information Commissioner’s Office to tackle the problem. It is reported that they are now closely monitoring the calls and texts made by these unscrupulous compensation claims companies. He also said they are very aware of “bad practices by claims management companies” and will “take action against those who break the rules”.
900 compensation claims companies closed down
According to the Ministry of Justice, over 900 compensation claims firms have been forced to close over the last five years.
This year, victims of these miscreant companies will have the chance to claim compensation for any malpractice by going to the Legal Ombudsman. In the future, all businesses will be made to sign written contracts with their clients before being allowed to advise on any claims or take any fees.
If you have either a personal injury claim or questions about payment protection, it’s very important that you go to a fully qualified solicitor with a good reputation. If you have any questions, please give us a call.