17:30 20 December 2012
After receiving complaints, Advertising Standards Authority have acted and ordered claims management firms to stop bombarding people with unsolicited payment protection insurance and accident texts.
Reports say that the public complained about Indian firm Data Supplier for sending misleading claims that could not be substantiated. In addition, the Mumbai firm was slammed by the advertising watchdog for supposedly not properly identifying itself in the texts.
Meanwhile, Tetrus Telecome was ordered by the Information Commissioner’s Office to pay £440,000 after it was revealed that the company sent texts daily over three years.
In recent months, the PPI mis-selling scandal has resulted in massive claims being lodged. Hundreds and thousands of people are thought to have been led to believe they needed PPI in order to take out a loan.
Because of this, banks and financial institutions were ordered to refund money taken from borrowers.
In related news, Building Societies Association has revealed that commission-hunger claims management companies have filed a number of compensation claims on behalf of those people who did not have PPI in the first place.
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