More than 14 claims management companies have been visited since the ban
More than 140 claims management companies (CMCs) have been asked to prove that they have not breached the referral fee ban.
The ban came into force in April. Since then, the newly formed Claims Management Regulation Unit, managed by the Ministry of Justice, has visited more than 450 companies.
Of those, nearly a third have been issued with notices to provide full details of their business models, and seven handed enforcement notices for rule breaches or irregularities with websites.
The figures were released by the unit.
Justice minister Helen Grant said: “We have taken strong action to rein in the rogue firms that have gathered in this sector and the impact is starting to show.
“Ending [referral] fees, which fuelled a growing compensation culture, has been an important step to reducing the cost of living for ordinary people – who have ultimately been footing the bill for them through their insurance premiums.”
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