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Pair fined £250,000 for rogue PPI cold-calling

Pair fined £250,000 for rogue PPI cold-calling

Category: Insurance

Updated: 26/11/2012
First Published: 02/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Information Commissioner's Office (ICO) has fined two men who acted illegally on behalf of claims management companies (CMC)s.

In the case, the first of its kind, it was revealed the pair sent millions of unsolicited text messages and repeatedly called consumers to persuade them to claim against miss-sold payment protection insurance (PPI).

The ICO found their conduct to be in breach of regulations, which state mobile phones and landline numbers must not be used to market products or services, unless requested by the consumer.

Director of operations at the ICO, Simon Entwisle, said: "While companies can phone people to sell them the latest product or service, the law states that individuals should not receive unsolicited texts or automated marketing calls unless they have given their permission.

"We know many companies are failing to do this and two individuals responsible for sending millions of illegal marketing messages are now facing six figure penalties unless they can prove otherwise."

The fallout of the PPI scandal has seen a surge of CMCs enter the market. Whilst the majority genuinely offer compensation for miss-sold mortgage, loan and credit card cover, a number of bogus firms have been set up in order to exploit unwitting consumers.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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