Legal News

The director of a Swansea-based company dealing in PPI claims management has been disqualified for nine years for breaching compensation regulations.

Christopher Ross White, 34, was the director of Rock Law Limited and has given an undertaking preventing him from running a company for nine years from 2 March 2017.

Rock Law Limited was incorporated on 5 July 2012 and traded from premises at Suite A, Floor 2, Princess House, Princess Way in Swansea. Christopher White became sole director on 25 March 2014 and remained so until liquidation.

On 3 October 2015, following an investigation by the Ministry of Justice Claims Management Regulation Unit, the company was found to be in breach of parts of the Compensation (Claims Management Services) Regulations 2006 and a fine was imposed upon the firm.

The business subsequently went into liquidation on 2 November 2015, owing £1,209,601 to creditors, including the £567,423 Ministry of Justice fine.

Following complaints from the general public, the Ministry of Justice Claims Management Regulation Unit had earlier carried out an investigation into Rock Law’s procedures – and found that the company failed to comply with the conditions of its authorisation and did not meet the standards of the Conduct of Authorised Persons Rules (CAPR) 2014.

The investigation found that Rock Law was contracting with clients during the initial sales call or shortly afterwards, not allowing clients sufficient time to consider pre-contractual documentation – and also failed to monitor sales agents or exercise sufficient control over them.

The company also failed to ensure that the training of staff was adequate, resulting in staff giving misleading content during sales calls – and failed to maintain appropriate records and audit trails showing the company had conducted itself responsibly overall, acted with professional diligence and complied with the rules.

As a consequence of the lack of records, investigators were unable to evidence compliance with the CAPR.

Insolvency Service Chief Investigator of Insolvent Investigations, Midlands & West, Sue Macleod, said:

“The Compensation (Claims Management Services) Regulations 2006 are there to ensure the general public is offered protection from over-zealous sales techniques by agents for companies operating within the claims management sector.

“Directors have a duty to ensure they exercise reasonable skill, care and diligence over company operations – and that they do not allow the company to breach legislation, resulting in financial penalties which impact upon the company continued success.

“This should serve as a warning to other directors who may feel tempted to breach legislation intended to serve as protection for the public.”

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