Complaints about mis-sold PPI remain the most active area in the financial claims sector. CMR continues to prioritise and tackle malpractice by CMCs on a risk assessed basis, and in particular where there is a risk of substantial consumer detriment. The regulator took the following action during this quarter:

  • Audited 17 CMCs
  • Continued investigations into 14 CMCs and initiated 3 new investigations
  • Issued 6 warnings to CMCs
  • Imposed a financial penalty of £553,000 on Help Your Claim Limited for rule breaches relating to high pressure sales tactics, misleading statements and failure to suppress consumer contact details upon request
  • Provided the Insolvency Service with information to support their investigation into Rock Law Limited’s failure to comply with the conditions of its authorisation and Conduct of Authorised Persons Rules 2014. A financial penalty of £567,423 was imposed in 2015 however the company failed to make any payment and went into liquidation. This resulted in the director disqualification undertaking of Mr Christopher Ross White for a period of 9 years.

CMR has further intensified its work to tackle unauthorised trading, including where necessary unannounced physical interventions into businesses believed to be operating illegally without authorisation. CMR is working with partner agencies to improve intelligence gathering and detection, and take targeted action on a risk assessed basis. CMR is also focussed on tackling the unauthorised elements of the holiday sickness claim market.

During the last quarter the regulator received 166 new notifications of unauthorised trading and took the following action:

  • Initiated investigations into 6 CMCs
  • Removed the websites of 9 CMCs
  • Issued 11 letters of warning to CMCs providing personal injury and financial claims services without authorisation

Complaints about mis-sold PPI remain the most active area in the financial claims sector. CMR continues to prioritise and tackle malpractice by CMCs on a risk assessed basis, and in particular where there is a risk of substantial consumer detriment.

The regulator took the following action during this quarter:

  • Varied the licences of 2 CMCs: (1) Thomson Legal Limited with measures relating to contracting with clients; and (2) Theclaimteam.com Ltd with measures relating to the prevention of high pressure and making misleading sales practices
  • Cancelled the licences of 2 CMCs: (1) Scarlet Marketing Services Ltd for making misleading sales calls, obtaining upfront fees without permission and failure to refund fees; and (2) JAS Financial Advisory Ltd for breaching their additional conditions of authorisation, not co-operating with the Legal Ombudsman and misleading statements
  • Audited 34 CMCs
  • Continued investigations into 14 CMCs and initiated 7 new investigations
  • Issued 6 warnings to CMCs

Source: Claims Management Regulator: enforcement actions January to March 2017 – GOV.UK