View more on these topics

Govt steps up enforcement actions against CMCs

The Ministry of Justice has reported a sharp increase in the number of enforcement actions it has taken in the second quarter of the year, as it seeks to clamp down on claims management companies.

A total of 25 investigations were started between April and June, compared with 35 in the entire year to March 2014.

The regulator has also stepped up the number of warnings it issued, with 136 warnings in Q2, the majority of which were related to PPI misselling. This compares with 144 warnings in the 12 months leading to March this year.

Some 26 firms engaged in direct marketing were audited between April and June, to ensure they were not sending nuisance calls and texts.

The MoJ says it has also “increased the number of website checks, with a view to identifying and putting a stop to any misleading marketing”.

Despite the increased investigation activity, the regulator cancelled only two authorisations in Q2, compared with 42 in the previous year.

The MoJ is also monitoring CMCs to ensure they are following rules introduced in April 2013 banning referral fees. Since the ban came into effect, the regulator has visited over 900 firms and audited more than 250.

A total of 73 audits were carried out to enforce the referral ban between April and June, with 10 warnings issued.


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. We're all doomed!!!!! 15th August 2014 at 11:32 am

    When these low-lives call me on my home phone (apart from cold calls – even though I registered for the TPS, only my Mum ever calls me on that) – I explain my gratitude for their concern, and ask them to hold while I search for the relevant documentation.

    I then just leave the phone on the coffee table, while I carry on with whatever it was I was doing……………

  2. Its about time too. Long may it continue and get tougher as I too hate with a passion, the cold calls.

Leave a comment


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