MoJ revokes licences of over 30 claims firms
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NATALIE CEENEY: WANTS STRONGER REGULATION
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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