A claims management company has been stripped of its licence after making a staggering 40 million nuisance calls in just three months.
Hundreds of people complained after Swansea-based Falcon & Pointer Ltd used auto-dialling technology to deluge them with calls about mis-sold PPI.
The Claims Management Regulator (CMR) discovered the company had breached rules by pressurising people to sign contracts and failing to allow them sufficient time to understand terms and conditions before they paid.
After ignoring warnings about its conduct, Falcon & Pointer Ltd has now lost its licence and will not be allowed to offer claims management services.
The firm must stop managing claims straight away and the regulator will tell clients whose claims are ongoing that they may be entitled to a refund of any fees already paid.
The CMR is responsible for the regulation of firms that assist people with compensation claims for personal and criminal injury and mis-sold financial services.
Four claims management companies have now been fined more than £1.7m in total since the CMR was given new powers in December 2014.
Anthony McCarthy, a director of Macks Solicitors in Middlesbrough, welcomed the crackdown on claims management companies.
“We’ve all become used to receiving nuisance calls on both our home phones and mobiles in recent years,” he said. “They can be extremely annoying, but there’s a more sinister side to them as well.
“If people are tempted to take up the inferior services many of these firms offer, the chances are that they will miss out on much of the compensation they deserve.
“This is especially true when it comes to personal injury claims. It is my belief that only a qualified solicitor can give personal injury claimants the expert, personal service they need.
“Not only do good solicitors firms have the legal knowledge needed to successfully pursue such cases, they also take the time to get to know you and all the often complex problems caused by your claim.
“Solicitors are also bound by the consumer charter and by codes of practice and are obliged to try to get the best outcome possible for their clients.
“With a claims management firm, you can end up being just a number, being dealt with by a call centre worker going through a computer checklist.”
CMR head Kevin Rousell said: “Falcon & Pointer has demonstrated the worst excesses of the industry. This firm clearly set out to plague the public and rip off consumers.
“They ignored warnings by us and the Information Commissioner’s Office, and today have had their licence revoked as a result of that wilful ignorance.”
