MoJ revokes licences of over 30 claims firms
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Over 30 financial claims management firms have had their licence suspended or cancelled in the last six months by the Ministry of Justice.
Latest figures from the MoJ show one firm has had its licence suspended in the last six months, with another 33 cancelled.
A further 95 surrendered their licence. Firms do this of their own accord, but in some cases it could be a result of the MoJ producing evidence of its wrongdoing.
Speaking at the British Bankers’ Association’s annual conference last week, Natalie Ceeney, chief executive of the Financial Ombudsman Service, called for claims firms to be more stringently regulated. The MoJ regulates all claims firms, not just financial ones.
Ceeney says the opinions she hears about claims firms range from the unprintable to the view that they are a more powerful corrective force than the regulator.
She says: “I hear widespread agreement from industry and consumer groups alike on the need for stronger regulation of the claims management sector. We share this view.”
A spokesman from the Claims Management Regulator, part of the MoJ, says it is considering ways to clamp down on unsolicited texts from claims firms.
He adds: “Claims companies that provide financial services are subject to strict rules and any firm that breaks them will be investigated and subject to appropriate enforcement action. This can range from a warning to suspension or cancellation of their licence.”
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Readers' comments (3)
Peter Turner | 4 Jul 2011 9:20 am
As one who specialises in helping small firms to deal with complaints, these firms actually generate business for me but I absolutely agree they should be regulated properly.
I have lost count of the number of times I have held a letter from an ambulance chaser in one hand that tells me the fact find in my other hand never existed.
The Fraud Act is quite clear that to make a statement you know is likely to be untrue is an offence and it is about time it was used against those CMCs who simply send out standard letters speculatively.
Culpability should also fall on the owners of the business, just as it does with FSMA and, from this month, with the Bribery Act.
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Anonymous | 18 Jul 2011 1:11 pm
Does anyone know where the list of these companies can be found? Or indeed a list of all the current licensed companies?
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Liz | 19 Jul 2011 5:11 pm
Peter, well said - if only I could invoke the Fraud Act every time I experienced an obviously false claim!
Anonymous, a list of registered CMCs can be found at https://www.claimsregulation.gov.uk/search.aspx
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