Company Misled People Into Paying £12 Million in Mis Sold PPI and Credit Services Before Liquidation

June 12, 2015
by admin in PPI News

An Insolvency Services investigation found that a Swansea-based company called Consortium Technology had left 2,264 unresolved claims before it had gone into liquidation.

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The IS investigation indicated that the consortium had upsold its services and misled the public, leaving individuals mis sold PPI and buying services they wouldn’t use.

The MOJ authorised Consortium Technology as a claims management services. However, they asked their customers for an upfront payment of £495. It was found in 2009 and generated a turnover of £12m approximately before it went into liquidation in 2012.

Consortium’s closure was due to its failure to explain complex law surrounding their promises to customers.

Remember, when working with a CMC make sure to:

  1. Ask About Their CRN

A Claims Regulation Number (CRN) is issued by the Ministry of Justice which certifies that its watchdogs are observing their activities. If they don’t provide a CRN, don’t bother working with them

  1. Never Work With Any Company Asking for Up-front fees

Legitimate CMCs will not ask for money. Instead, they will have you opt for a contingency payment service. This means you only pay for your service if they successfully reclaim your repayments.