Claims management companies that are under investigation will be named online, the Ministry of Justice said today.

The list, which goes live next Thursday, will include details of what action is being taken and the reason for it.

The MoJ, which runs claims management regulation, says the move will give consumers peace of mind that their complaints are being acted upon.

A further list, which goes live today, will also compile closed cases with additional details on what rules have been breached and what the punishment was.

The MoJ is keen to show its enforcement is working in the face of a huge increase in claims management companies, particularly those dealing with personal injury and PPI claims.

‘By publishing all enforcement action it will send a clear message to the industry that we will not tolerate firms that break the rules,’ said head of regulation Kevin Rousell. ‘This is part of ongoing work to drive malpractice out of the industry and improve the reputation for the vast majority of CMCs that do follow the rules.’

The MoJ banned more than 100 payment protection insurance CMCs and warned a further 149 last year for poor practice as complaints continued to be made against the businesses. Around 2,600 claims management companies are licensed to provide claims management services, with around 1,700 licensed for personal injury and 1,150 for financial claims

Last year more than 10,000 complaints were made to the regulator, which found the main causes for consumer concern were: misleading marketing, high-pressure selling, poor complaints systems and unclear fees.

Later this year the Legal Ombudsman Scheme for solicitors will be extended to claims management services. A new code of conduct, enforcing written contracts before any fees are taken, will come into force this summer.