View more on these topics

100th claim chaser is struck off by the MoJ

The Ministry of Justice Claims Management Regulator has struck off its 100th claim-chaser for poor practice, including high-pressure tactics and misleading advertising.

The MoJ, which started regulating claims management companies in 2007, has cancelled firms’ authorisations for failure to comply with the claims regulation conduct rules.

MoJ head of regulation Kevin Rousell notes a trend towards high-pressure cold-calling, including misleading and unsubstantiated claims and encouraging consumers to pay on-the-spot fees. He says that in the case of debt-related claims, many clients find themselves still liable to pay all their debts in full.

Rousell says: “Most claims management companies registered with the Ministry of Justice operate within the rules. However, some firms choose to flout those rules and also target consumers in debt. People desperate for a way out of their financial troubles can be vulnerable to the misleading mar- keting that the Ministry of Justice Claims Management Regulator is continuing to tackle.”

Association of Mortgage Intermediaries director Robert Sinclair says claims management companies should be charged case fees if they are found to be bringing vexatious claims to the Financial Ombudsman Service.

He says: “This would ensure we continue to deliver an industry that serves consumers well, without the payment of up-front fees, which we currently have with the ombudsman service.”

Recommended

State of the markets: UK equity income

Artemis Income Fund manager Nick Shenton discusses the state of the UK equity income market with journalist Alexis Xydias. With the first three months of 2015 showing strong returns for both the Artemis Income Fund and UK markets generally, Nick Shenton discusses the fund’s top contributors – including overseas holdings Novartis and Bayer – and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com