Firm used pressure tactics to get customers to make a claim
Rock Law Ltd has been hit with a record £507,000 fine for pressurising customers into making claims against firms who had mis-sold payment protection insurance (PPI).
Rock pushed clients into signing contracts, without giving them time to understand the terms and conditions, and then began taking unauthorised payments from customers.
The Swansea-based firm was slapped with the fine by the Claims Management Regulator, which sits within the Ministry of Justice (MoJ).
Firms can now expect fines of 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: “The size of this record fine demonstrates how seriously we take protecting the public from this exploitation.
“I hope firms that persist with poor practice take notice – If you break the rules you will have to pay.”
The fine is the latest in a series of moves by the government to clean up the industry.
Since 2010 the regulator has removed the licences from over a thousand Claims Management Companies (CMCs), including 300 last year. Firms which are subject to investigation and enforcement action are now named online.
Justice Minister Lord Faulks said: “Claims management companies should be in no doubt that they must abide by the rules. There are no excuses.
“I want to make sure we’re doing all we can to protect consumers, get them a fairer deal and prevent their time being wasted by the rogue practices of some firms.”