Claims groups face crackdown

 
Marion Dakers
CLAIMS management firms face tougher rules on how they deal with customers, the Ministry of Justice said yesterday.

Firms that help people claim payment protection insurance refunds or personal injury compensation will be required to give clients written contracts, the ministry said, and are facing limits on cold calling and text messages.

Regulators punished more than 400 claims management companies in the last year for poor practices, 260 of which have been shut down.

“We want consumers to be better protected,” said head of claims management regulation Kevin Rousell.