Monthly Archives: June 2013

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MOJ to Name and Shame Rogue PPI Claims Firms

MOJ

Claims management regulator, The Ministry of Justice (MOJ), has recently confirmed that it plans to name and shame rogue PPI claims companies on their website allowing consumers to see exactly what rules have been broken and by whom, and the reason that action has been taken.

Head of Claims Management Regulation Kevin Rousell said: “Consumers can sometimes unknowingly sign-up to a CMC that may be under investigation by my Unit… By creating an online list that names CMCs that are being investigated it will ensure consumers know exactly what action is being taken and the reason for it. It will also give consumers peace of mind that their complaints are being acted upon”.

The move, brought about by the increasing number of complaints against PPI claims firms has been welcomed by leading claims management compnay, Mis Sold PPI Claims Co, which have stated that “We welcome these changes as they will give consumers better protection against rogue CMC’s who are making it increasingly difficult for legitimate firms to work in this sector”.

We think this move long overdue, as many other regulatory bodies such as the Solicitors Regulatory Authority (SRA), and the Health Professions Council (HPC) already have similar processes in place. The idea of making public any disciplinary proceedings and actions currently affecting licensed Claims Management Companies should send a clear message of intent to CMC’s that the MOJ will not tolerate firm that flout or break the rules.

The MOJ has already banned over 100 PPI claim firms and warned a further 149 to clean up their act. Last year, more than 10,000 complaints were made to the regulator, which found that the main reasons for consumer complaints were misleading marketing, high-pressure sales techniques, poor complaints systems and unclear fees.

As part of an industry wide crackdown, the MOJ is also looking to ban advertisements that offer cash incentives to vulnerable individuals for signing up to use their services, as well as new conduct rules that will put an end to all verbal contract arrangements between consumers and CMCs thereby enforcing written contracts before any fee can be taken.