MoJ shuts 209 CMCs in six months

The Ministry of Justice’s Claims Management Regulation Unit shut down 209 firms for bad practice between April and November last year, according to new figures.

The regulator also warned 140 claims management companies (CMCs) for poor behaviour and suspended three.

This year the ministry will roll out new CMC rules, including making all CMCs sign written contracts with consumers before taking fees. An independent consumer complaints service will also be launched to compensate those who are ripped off by CMCs.

Justice minister Helen Grant (pictured) 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.”

Claims Management Regulation Unit head Kevin Rousell said: “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.”