1. People have received warning about unscrupulous companies offering to make claims for
compensation and to successfully write off any debts that the person may have.
The UK’s Ministry Of Justice, made nearly 734 claims management companies shut their
doors in the twelve months ending in March 2012, which is nearly 20% of all claims
management companies located in the UK.
This new data was released to the public after the Law Society Gazette filed a freedom of
information request.
The news arrives merely weeks after the UK government ordered an inquiry into some of
these claims management companies and their dealing, in the wake of a tremendous surge in
false PPI Claims, to the UK’s major high street banks.
The claims management industry has been heavily criticised in the UK media for profiting for
the Payment protection insurance scandal; however there are grave concerns emanating
from the MOJ, about companies telling customers that debts can completely be written of,
because their credit agreement is invalid.
Consumer rights campaigners have said that the claims management companies pepper
people with emails and phone calls, guaranteeing that they will be able to receive PPI
compensation, yet that take out a significant percentage of any compensation won and
charge fees if the consumers case is not won.