On 15 October 2015, the Claims Management Regulator (CMR) announced that it had imposed a fine of £567,423 on Rock Law Limited (Rock), a Swansea-based payment protection insurance claim management firm.

Claims management companies are only permitted to receive payments from customers if the parties have entered into a written agreement. The CMR found that “Rock Law Ltd were taking unauthorised payments which meant vulnerable people were at risk of being exploited” and that they were “coercing clients into signing contracts, without giving them enough time to understand the terms and conditions”.

The fine is the second, and largest, fine to be issued by the CMR, which regulates companies that offer assistance to consumers with certain compensation claims.