A company which used high pressure tactics to get hundreds of customers to make PPI claims in the UK has been fined more than half a million pounds by the Claims Management Regulator.
Rock Law Ltd, based in Swansea, has been fined almost £570,000 for coercing clients into signing contracts, without giving them enough time to understand the terms and conditions before taking unauthorised payments.
The Government changed the law in December 2014 to introduce financial penalties for firms found breaching the regulator’s rules of conduct. The fines can be up to 20% of their annual turnover, as well as having their trading licence suspended or removed.
Head of Claims Management Regulation Kevin Rousell said: “Our investigation showed that Rock Law Ltd were taking unauthorised payments which meant vulnerable people were at risk of being exploited. The size of this record fine demonstrates how seriously we take protecting the public from this exploitation.”
An investigation by the regulator found that Rock Law Ltd had consistently infringed rules. Under those rules, companies are not allowed to take any payments from customers unless they have signed a written contract to work with them – so that people cannot be pressured into making agreements.
Since 2010 the regulator has removed the licences from over a thousand Claims Management Companies, including 300 last year.
To complain to the regulator: go to https://www.gov.uk/complain-about-claims-company
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