Firm fined for 100 million nuisance calls

Major insurer calls for regulatory and legal reforms after record offence

Firm fined for 100 million nuisance calls

Insurance News

By Louie Bacani

The Information Commissioner’s Office (ICO) has fined a company behind 99.5 million nuisance calls, which included those related to road traffic accident claims and payment protection insurance compensation.
 
Keurboom Communications Ltd has been issued the ICO’s biggest fine for nuisance calls – £400,000 – after over 1,000 people complained about the firm’s recorded or automated calls.
 
According to the ICO, Keurboom made the calls over an 18-month period. Some people received repeat calls, sometimes on the same day and during unsociable hours.
 
Keurboom also hid its identity, making it harder for people to complain.
 
The ICO said companies can only make automated marketing calls if they have the customers’ consent, which Keurboom lacked.
 
“Keurboom showed scant regard for the rules, causing upset and distress to people unfortunate enough to be on the receiving end of one its 100 million calls,” said ICO head of enforcement Steve Eckersley.
 
“The unprecedented scale of its campaign and Keurboom’s failure to co-operate with our investigation has resulted in the largest fine issued by the Information Commissioner for nuisance calls,” he added.
 
In April 2016, Keurboom and its director, Gregory Rudd, were prosecuted and fined by a court after failing to provide information to the ICO.
 
The company has also been placed in voluntary liquidation following an investigation by the ICO.
 
Reacting to the latest ICO fine, LV= claims director Martin Milliner called for changes to the law so that the regulation of claims management companies shifts to the Financial Conduct Authority (FCA) and that the fines imposed on poor or illegal practices are placed upon the individuals that run the erring firms.
 
“Not only are these unwarranted messages annoying millions of us, but they also lead to people attempting to make fraudulent claims,” Milliner said. “Insurance is there to pay out for people who have actually been injured, not for people hoping to make some money illegally. We take a hard line on fraud and will push for the toughest sentence.

“We are calling for the amendment of the current rules to make them stricter and more personalised, together with seeing tougher regulation through the FCA.”


Related stories:
Insurance providers, bosses to face £1 million fines under new law
Claims management boss banned for 10 years
 
 

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