Asked by: Jason McCartney (Conservative - Colne Valley)
Question to the Ministry of Justice:
To ask the Secretary of State for Justice, how many companies have been closed down by the Claims Management Regulator as a result of persistent nuisance calls to date.
Answered by Shailesh Vara
Since the start of regulation in 2007, the MoJ's Claims Management Regulation (CMR) Unit has closed down over 1,100 CMCs.
The Claims Management Regulator (CMR) has not closed down a claims management company (CMC) for persistent nuisance calls. It has taken other enforcement action in relation to non-compliant marketing practices including calls by CMCs. During 2013/14, for example, the CMR's specialist marketing compliance team carried out 45 audits, commenced 5 investigations, issued warnings to five CMCs in respect of their marketing practices, and restricted the marketing activity of one CMC. The CMR is working closely with the Information Commissioner's Office and Ofcom to support the delivery of the Government's Nuisance Call Action Plan, and has joined a taskforce led by consumer group, Which? to review issues concerning consent and lead generation. The taskforce is due to report back to the Government in late 2014.