The Claims Management Regulator at the Ministry of Justice (MoJ) has issued a bulletin giving details of its supervision and enforcement actions during the third quarter of 2016.

Between July and September, as many as 74 claims management companies (CMCs) had their authorisations cancelled for various breaches of the rules. Two more companies were fined, 100 were warned and 12 more authorised companies had investigations against them opened during the three-month period.

The bulletin contains links to some of the fines and bans imposed by the MoJ during the period, which included:

• Paul Norton had his authorisation cancelled for multiple breaches of the rules regarding marketing practices. These included the requirements to: ensure referrals, leads and data sourced from third parties have been obtained in accordance with applicable legislation and other regulatory requirements; avoid cold calling in person; and ensure that the name of the company making a marketing communication can be clearly identified
• Reactiv Media Limited had its authorisation cancelled after serious breaches of four sections of the MoJ rulebook. These were: all information given to clients must be clear, transparent, fair and not misleading; if a CMC advises a client to pursue a case, it must be in the client’s interest to do so; CMCs cannot engage in personal cold calling; and a CMC can only use the term “no win no fee” if the client will definitely not have to pay other costs such as fees for not pursuing a case, disbursements or indemnity insurance
• Arb Advisory Limited was fined £119,500, principally for deficiencies in its complaints handling. Issues included: not having a written complaints procedure, failing to ensure all employees were aware of the complaints procedure and what it contained, and not maintaining records of all complaints received and making these available to the MoJ as required
• UKMS Money Solutions Limited was fined £50,000 for failing to ensure that referrals, leads and data were obtained in accordance with the regulator’s rules and applicable legislation

The regulator says it is also investigating the activities of 13 unauthorised CMCs, and that 28 companies had their websites shut down during the last quarter as part of the MoJ’s clampdown on unauthorised claims management activity.

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article.