Government crackdown on claims management companies

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It has emerged that the Claims Management Regulator has shut down close to a 100 claims management companies in a bid to carry out a crackdown on firms in the sector which mislead the public.

Companies were using sales tactics and other methods of selling, including cold calls in person in addition to making misleading claims of writing off debts under the pretext of their non compulsion.

In a myriad of other similar cases, claims management companies that include personal injury firms, used marketing techniques and statements which misled people and also evaded requests for information from the regulator.

Such companies are bound by the claims regulation conduct rules, and now stand in breach of these rules. The authorisation of such companies has been cancelled since as early as April 2007.

The rules stated that firms must not cold-call in person or engage in any form of high pressure selling. They must not charge or receive a referral fee for their work and must also provide injury compensation claimants with written information on how to pursue a claim and allow a cooling off period of at least 14 days.

Many firms offering to write off the debts of many were banned since they claimed that their debts were unenforceable.

In the wake of such incidents, it is very important to look for reputable and credible solicitors, who operate within the law and also give you sound and objective advice in such matters. Direct2Compensation is a trading name of Southwest Signings Ltd.  Southwest Signings are authorised and regulated by the Financial Conduct Authority, Our authorisation number is 830395.  Details can be found on the Financial Conduct Authority financial services register.

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