The Ministry of Justice shuts down Cartel Client Review
Published ¤ 19/03/2010 09:52:00
The Ministry of Justice (MoJ) has suspended the authorisation of Cartel Client Review Ltd with effect from 18th March 2010. This means that CCR will no longer be able to carry out any claims management services. As with any suspended business, the MoJ will be monitoring the situation and considering next steps that may be appropriate.
Last week, Cartel's legal firm Consumer Credit Litigation Solicitors was shut down by the Solicitors Regulation Authority (SRA) because of "suspected dishonesty".
Shortly afterwards, Cartel stopped taking on new clients and stopped answering phone calls to its offices. Its website has been taken down as well.
In an interview with yesterday's Daily Mirror, Carl Wright said his firm had taken about £20m in fees from 70,000 customers, but said: "The money is not available to be able to be refunded back to the clients."
The MoJ cancelled the firm's authorisation, which is the most serious sanction available to the regulator after warnings and other undertakings. It said that removing a business's authorisation is a serious matter, which can only be taken after careful consideration of all the evidence and the consequences for clients of such action.
It added: "If you are a customer of CCR your agreement with them, as with any provider, is a private contractual matter between yourself and the provider in which MoJ cannot intervene directly because it is not a regulatory matter for which MoJ has responsibility."
For more information, see the MOJ website.
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