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MoJ reveals max fines for claims firms under new rules

The Ministry of Justice will have the power to fine claims firms up to 20 per cent of their turnover under new powers taking effect at the end of the month.

Last year, the MoJ announced it would be given the power to impose fines on claims firms which use information gathered by unsolicited calls and texts or which provide poor quality services.

It has now published details of these additional enforcement powers, which come into effect on 29 December.

The MoJ will be able to impose maximum fines of £100,000 on firms with turnover of less than £500,000 a year.

For firms with a turnover of more than £500,000, the MoJ will have the power to fine them a maximum of 20 per cent of turnover.

The MoJ says financial penalties will be likely where: rule breaches have continued despite previous warnings; detriment caused to consumers can be monetised; the firm has sufficient means to pay a fine; and suspending or cancelling the firm’s authorisation would be disproportionate.

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Comments

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

  1. So where cancellation of authorisation is deemed to be disproportionate, and the firm doesn’t have the ability to pay a fine… the sanction is what?

  2. Cue – is that not more of a legal consideration – default etc?

  3. Not a moment too soon. I’m still receiving unsolicited texts and phone calls, both at home and at work. CMC’s are a scourge that need to be robustly attacked.

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