View more on these topics

MoJ shut down over 700 claims firms last year

The Ministry of Justice has closed down around one in five claims management companies over the last year and almost doubled the number of MoJ staff responsible for regulating claims firms.

A freedom of information request submitted by the Law Society Gazette found the MoJ’s Claims Management Regulation department cancelled the authorisation of 734 claims firms in the year to the end of March.

The closures brought down the total number of authorised claims firms to 3,018.

The MoJ has set up a dedicated team to deal with poor practices by rogue claims firms who solicit claims for missold payment protection insurance.

The number of MoJ staff that have been allocated to regulating claims firms has risen from 32 in 2007, when the MoJ took over claims management regulation, to 57 currently.

The MoJ launched an investigation last month into claims management companies after a wave of invalid compensation claims on behalf of customers allegedly missold PPI.

Recommended

Responding to high net worth proposals

When the last Mortgage Market Review paper was published in December, I was pretty vocal about our feelings regarding the proposals in relation to high net worth borrowers.

1

The grip tightens

As if brokers have not been through the wringer in the past few years, news of lenders starting to cut proc fees is creating new tension. For some it’s just lenders tidying up their strategy, for others it’s another almighty blow

Strong dollar can be a powerful driver of UK dividend growth in 2015

By Robin Geffen, fund manager and CEO 

This year threatens to be a challenging one for UK dividend hunters. Last year saw an all-time record amount paid out in UK dividends — some £97.4bn, according to research from Capita Dividend Monitor. Yet as Capita also pointed out, out the biggest single factor driving the growth in the fourth quarter of last year was easy to identify: the rising US dollar. 

In our view, this trend is much more than simply a one-quarter phenomenon. It is actually the most profound issue to get right as a UK equity income investor in 2015. We believe that the US dollar will continue to strengthen significantly from its current level. This is due more to the US economy’s demonstrable de-coupling from the rest of the world than to a view on the UK. The US has a strong chance of tightening monetary conditions this year without jeopardising growth or de-stabilising its housing market. The same can unfortunately not be said about the UK.

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Laurie 17th April 2012 at 5:53 pm

    As an ex broker now working in the claims industry you would not believe the tactics employed by the major banks in trying to dodge a claim. One of the many excuses is the use of a non advised sale !! Most of the clients thought they were getting advise and this was obviously not the case. There are always two sides to each story and lets have some balance in this argument. Consumers have been mis sold this product, the vast majority by the banks hiding behind the protection (to them) of a non advised sale.

  • D 17th April 2012 at 1:40 pm

    Why do you never report about the hundreds of thousands that have been ripped off and help them succeed in claims ?

    If you read the report it is clear that this is companies that have closed down in the majority. How many brokers have had their registration cancelled with the FSA ? does that mean they were all crooks ? or maybe some just did not want to trade anymore ?

  • keith Hood 17th April 2012 at 1:20 pm

    Well its a start!

  • colin 17th April 2012 at 12:42 pm

    3.018 authorised ambulance chasers…………i m fed up with getting spurious letters about having sold my clients lump sum PPI, when in fact the policies they are writing to me about are life assurance policies.

  • Bill Wells 17th April 2012 at 12:32 pm

    Only 3018 to go. Then stop solicitors from ambulance chasing and advertising altogether and it will be good riddance to bad rubbish !

  • Shaks 17th April 2012 at 12:26 pm

    Close them all down, they’re parasites that suck on the blood of the ill-informed. Anyone with a genuine claim can obtain redress free of charge by dealing direct with the company in question.

  • GARY 17th April 2012 at 12:01 pm

    There’s almost MORE claims firms than broker firms left.