Regulator Shuts Down 200th Rogue Claims Firm

Oct. 1, 2010 - PRLog -- Rogue claims made by unscrupulous companies are the bane of the micro legal industry. As with other trades that suffer from similar problems, the loser is often the reliable company that has built up a reputation over the years only to see it destroyed by those on the lookout for a quick profit – whatever the cost. These rogue firms often breach rules and put clients’ money at risk. Some offer to help people with personal injury compensation claims and attempt to get clients’ debts cancelled when they are in no position to do so.

However since 2007, the claims management regulation unit has managed to shut down 200 firms that employ such tactics - a highly successful strike rate that is slowly but surely eliminating them from the industry.

Questionable Tactics

The firms that the unit targets are those that often use questionable tactics to lure in customers. These tactics include cold-calling in person, by phone or by text message, and using misleading marketing, charging unfair upfront fees and offering “cash for crash” schemes that are often frauds.

A Great Success

Kevin Rousell, the head of the claims management regulation unit is very pleased with the progress made by his unit and had this warning to firms who mislead the public: ‘Many firms provide a valued service, helping people who might not otherwise be able to afford to have access to justice. But there are some which mislead people or carry out various kinds of malpractice, deliberately or otherwise, and we are working hard to ensure they either bring their practices in line, or stop altogether.’

With over 200 firms being shut down, the industry has become a much more tightly regulated sector and the unit has sent a clear and powerful message to companies that are or have been involved in fraud, misleading marketing and aggressive sales techniques. Unless they cease to use these tactics, they will cease to operate as a company in the very near future.

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