Rogue claims firms face large fines
Claims management companies that flout the rules will now be able to be fined for breaches, including using information gathered by unlawful unsolicited calls and texts, wasting people’s time and money by making spurious or unsubstantiated claims and misleading marketing.
Under the proposals the fines will be based on the turnover of the company involved and the nature of the offences.
For large claims firms fines could be up to 20% of their annual turnover, meaning they could total hundreds of thousands of pounds and potentially millions in some cases.
Lord Faulks said: “No longer should claims companies be able to plague hardworking people and waste everyone’s time. The scale of these fines shows just how serious we are about stopping them.
“This is also good news for the reputable firms in this industry, as it will boost confidence in the services provided by the sector.”
The fines, due to be introduced later this year, will be brought against companies which break rules set by the Claims Management Regulation unit at the Ministry of Justice.