Such companies used aggressive sales techniques and exaggerated claims, profiting from exorbitant commissions on after the event insurance policies.
[3] These concerns, especially around the operation of conditional fee agreements, led to regulation of the market by Part 2 of the Compensation Act 2006.
[8][9] It is a crime for an unauthorised person to provide or offer claims management services, or to pretend to be authorised.
If convicted on indictment in the Crown Court, offenders can be sentenced to an unlimited fine or two years' imprisonment.
[17] The Regulator may investigate unauthorised trading and seek an injunction to prevent it or bring a criminal prosecution.