The Ministry of Justice removed the licences of 200 claims firms during 2013 for flouting its rules, the latest data from the claims management regulator shows.
This takes the number of claims firms operating in the UK to 2,254 as at November 2013, down from a peak of 3,367 in 2011. The figure is made up of around 1,400 personal injury firms and about 1,100 financial claims firms.
In November the MoJ announced it is to be given the power to fine claims firms after an amendment to the Financial Services Bill.
It also launched a consultation on a set of toughened conduct rules for firms.
Justice Minister Shailesh Vara says: “With rigorous new measures being brought in across the board, we are taking strong action to rein in the rogue firms operating in this sector.
“Continued action to remove licenses from companies with poor practices alongside forthcoming regulation reforms, proves just how much work is going on to get tough on companies that defy the rules and bombard the public with unwelcome calls and misleading information.”