Claims firm under the regulatory microscope
Share
CARL WRIGHT: BBC CLAIMS
The Ministry of Justice has revealed that it is investigating claims management firm Cartel Client Review.
The firm is one of the largest of its type in the UK. Since its launch in 2007 it has recruited more than 4,000 representatives. A high proportion of these are financial advisers and mortgage brokers.
It offers clients help in recovering money from credit card, loan and mortgage companies, looking for irregularities in contracts that could entitle customers to financial compensation.
A spokeswoman for the MoJ, the body in charge of regulating claims firms, says: “We are investigating Cartel and associated businesses.
“We are not able to comment on the specifics of our investigation as to do so could jeopardise its progress and outcome.”
In January 2009 the Advertising Standards Authority banned one of the company’s radio advertisements after deeming it misleading.
The banned advert stated: “Did you know that if you took your credit card out before April 2007 your outstanding balance could be BBC claims are falsecompletely written off?”
Carl Wright, chief executive of Cartel, has not commented on the MoJ’s investigation into his firm but has addressed a number of allegations that were made in BBC Radio 4’s <I>Money Box</I> programme broadcast on February 27, calling them “false and misleading”.
