The Ministry of Justice has revealed that 209 rogue and unethical Claims Management Companies and Personal Injury Solicitors have been closed down in a six month crack down. The action was taken between April and November of last year (2011).
In addition, a further three rogue firms were suspended and 140 warned during this time period.
The Claims Management Regulation Unit has been working tirelessly to resolve the problems created by rogue Claims Management Companies for customers seeking compensation. The unit is now working with the UK's data watchdog to help bring rogue firms to justice.
Many rogue Claims Management Companies have been found guilty of cold-calling and texting prospective customers feeding them mis-information. This practice, aimed at drumming up additional custom, has led to widespread misunderstanding of personal injury laws and the rights of Britons.
Thousands of Britons are affected by injuries and accidents that are not their fault every year. These victims are often entitled to significant compensation that they can claim with the help of ethical Claims Management Companies. Unfortunately, this prosperous business is often taken advantage of by vulture-like companies attempting to take advantage of the market.
The unethical Claims Management Companies were found guilty of contacting UK citizens mis-informing them that they were entitled to make a Personal Injury Claim against an accident they were involved in or an injury that they have suffered.
This has been the latest leg in a continued effort to close down all unethical Claims Management Companies with over 900 being closed down in the past 5 years.
Kevin Rousell, head of the Claims Management Regulation Unit, has confirmed the bodies' continued attempts to help Britons receive the compensation and justice that they are entitled to:
"We will continue to tackle bad practices by Claims Management Companies and take action against those who break the rules."
These actions are working in tandem with government plans set to punish unethical Claims Management Companies. New regulations will ensure that all businesses agree written, clear contracts with customers before taking any fees from them.
Furthermore, from next year all consumers will be reserved the right to contact the legal ombudsman. The ombudsman has the power to award compensation to parties and victims that are entitled to it.
With the new regulations in place, Britons making an Injury Compensation Claim will be offered all the help that they require without the rogue agencies and businesses interfering and offering false information.