Government clamps down on bad service and misleading claims
A Ministry of Justice (MoJ) crackdown on rogue claims management companies has led to 209 companies shutting down, three being suspended, and 140 being warned for bad practice in the past six months.
The Claims Management Regulation Unit, part of the MoJ, tackled companies that short-changed customers through bad service, misleading marketing or hidden charges.
The Unit, which regulates claims management companies, has removed licences from more than 900 firms since it was set up in 2007. From this year, the Legal Ombudsman will provide an independent consumer complaints service for claims management company clients.
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