According to the Ministry of Justice, more than 200 rogue claims management businesses were shut down in six months as part of a clampdown.
The Claims Management Regulation Unit closed down 209 such businesses between April and November 2012, it said.
Three more rogue businesses were ceased and a further 140 were cautioned.
Firms shut down in the period include personal injury firms like Accident First Xchange in Greater Manchester, financial services companies like First Refunds in West Sussex, and housing repair organisations like People’s Legal Bureau in Hampshire.
The unit is also working with the UK’s data watchdog to challenge businesses that break the law with unwanted calls and texts.
Claims firms advertise extensively on TV, the internet and in the newspapers, encouraging people to pursue personal injury compensation, and for other losses. Some also use inappropriate cold-calling, by phone or text, to drum up clients.
In 2012, the banking industry’s exposure to millions of claims for mis-leading of payment protection insurance (PPI) policies has proved beneficial for the rip-off firms, who have encouraged tens of thousands of individuals to use their services, for a charge.
However, individuals can make a PPI claim themselves without charge.
Head of the Claims Management Regulation Unit, Kevin Rousell, said it was working with the Information Commissioner’s Office to eliminate calls and texts.
He said: “We will continue to tackle bad practices by claims management companies and take action against those who break the rules.”
The Ministry of Justice said, more than 900 claims businesses have been shut down in the past five years.
The latest crackdown comes ahead of government plans in 2013 to give consumers more protection against rogue companies, such as making all companies agree written contracts with customers before taking payments.
And from 2013, consumers gain the right to be able to go to the Legal Ombudsman, which will have the authority to award compensation to victims of rogue businesses if appropriate.
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