MoJ crackdown wipes out 20% of claims management firms

The Ministry of Justice has closed down 734 claims management firms, around one in five, in the past year, according to latest figures.

The firms were ‘cancelled’ in the 12 months up to the end of March. The closures were promoted by 9,570 public complaints. There are currently 3,018 recorded claims management firms.

Many firms closed down of their own volition, but numerous others were shut down by the MoJ, which is beefing up the way it regulates the firms. Claims management companies include those specialising in personal injury, credit hire and payment protection insurance.

The figures were revealed by a freedom of information request by the Law Gazette.

Anthony Sultan, executive member of trade association the Claims Standards Council, told the Gazette: “A lot of companies have decided it is not for them and they don’t want to be in claims. It’s very important for those heavily involved in the industry that the highest standards prevail and anyone who fails to meet them is exited from the sector.”