Claims Management Company Fined For Nuisance Calls

A claims management company has been fined more than £200,000 under new claims management regulation powers.

Claims management company, The Hearing Clinic, has been fined £220,000 by the Claims Management Regulator following hundreds of complaints from members of the public who have received speculative calls about claims for Noise Induced Hearing Loss.

Many of those called had subscribed to the Telephone Preference Service (TPS), which indicates that they did not want to receive such calls.

The fine is the first to be issued by the Claims Management Regulator, based at the Ministry of Justice, since the government changed the law in December 2014 to introduce the fining power. Firms found breaching the regulator’s rules of conduct now face fines of up to 20% of their annual turnover, as well as having their trading licence suspended or removed.

New figures also show that 296 claims firms received warnings from the regulator in 2014 to 2015 and 105 had their licences removed. The total number of companies in the industry has fallen by 300 this year, to 1,752 (from a peak of 3,367 in 2011).

Further investigations by the Claims Management Regulator are ongoing which could lead to sanctions, including fines.

Additional conditions have also been imposed on The Hearing Clinic, including restrictions around calling numbers registered on the TPS and using data from third-party companies. The Hearing Clinic could face further sanctions including suspension and, where necessary, closure if they break the rules again.

Claims Management Regulator Kevin Rousell said:

"The new fines mean we have greater powers to crack down on claims management companies that make nuisance calls.

"Companies should be in no doubt that if they break the rules then we won’t hesitate to fine them in addition to the tough action we already take."


Related UK National News Stories
Click here for the latest headlines.

23 April 2012
Consumers Told To Make PPI Claims Directly
A summit will be held today aiming to shed light on the cost of using claims management companies for payment protection insurance (PPI) claims.
02 October 2015
Govt To Review Rules Governing Claims Management Companies
A government-backed initiative is to look into an operation of rogue claims management companies (CMCs), which provide bad services and bombard people with nuisance calls. A call for evidence has been launched for a fundamental independent review of the way claims firms are regulated.
08 February 2008
Southern Water Fined £20.3 Million
Southern Water has been fined £20.3 million by industry regulator Ofwat for deliberately misreporting information and delivering poor service to customers. Ofwat announced that Southern Water would receive the fine in November and confirmed it on Friday, following a 28-day consultation period.
03 March 2015
Footballer Released On Bail Over Underage Sex Claims
England and Sunderland footballer, Adam Johnson, has been released on bail after being arrested on suspicion of having sexual activity with a 15-year-old girl. The footballer, 27, was questioned by Durham Police on Monday. Sunderland AFC have suspended the player pending the outcome of the investigation.
15 November 2011
Business To Benefit From Express Patents
The Government has confirmed a new small claims service at the patent court to help small and medium sized businesses protect their copyright, patents, trade marks and designs. Currently small firms have to pay high costs and undergo lengthy procedures to bring claims against those who infringe their Intellectual Property (IP) rights.