Claims Management Company Director Banned

in Blog

A Government agency has banned a director of a claims management company in Swansea for breaching rules and misleading clients.

Dean Spencer, director of CMC (Claims Management Company) Claim & Gain Limited, banned for 10 years, cannot operate, or manage a business until 2027.

Claim & Gain started in 2011. However creditors liquidated it in March 2015 and placed it into creditors’ voluntary liquidation.

Following an investigation, the Insolvency Service discovered that the claims management company engaged in unfair trading practices. These corrupt practices contravened Regulation 22 of the Compensation Regulations Act 2006.

Yet despite warnings from the Ministry of Justice, Dean Spencer failed to resolve breaches in his company. It continued to deceive customers. This disingenuous operation was done by taking fees upfront before work conducted from more than 100 customers, and outsourcing to third parties, and cancellations.

Customers had legal fees deducted without their authorisation.

One has to bear in mind that this business was NOT a law firm. It was a CMC, a ‘claims management company’. These businesses operate under different conditions to a solicitor. CMC’s are not law firms but CMCs. The Claims Management Regulator regulates CMCs.

They handle legal cases differently to a lawfirm. The SRA (Solicitors Regulation Authority) regulates lawyers and law firms.

Before you make a compensation claim for personal injury – ASK THE PERSON YOU ARE TALKING IF THEY ARE FROM A LAW FIRM OR A CMC. Ask for their SRA (Solicitors Regulation Authority) number. They might be a CMC and should pass your claim to a qualified law firm.

Who can make a no win no fee personal injury claim?

Anyone can make a claim. As long as your solicitor offers a no win no fee service. Which PHC Law does.

You need to make a claim within 3 years of the accident.

In general, a claim is more likely to be accepted if you have instructed a personal injury solicitor to deal with your case. Not a CMC or your insurance company (which you are not obliged to do). Your solicitor can then obtain all the evidence required.