"This should serve as a warning to other directors who may feel tempted to breach customer protection legislation."
The Insolvency Service investigation found that Claim & Gain misled the public in sales calls regarding claims services offered, fees charged, outsourcing to third parties and cancellations. Services paid for by customers were not provided and fees were deducted from customers without their authorisation.
Following an investigation and subsequent warnings from the Ministry of Justice, Mr Spencer failed to rectify the breaches and continued to mislead customers by taking ‘upfront’ fees from a further 149 customers.
Robert Clarke, Investigations Group Leader at the Insolvency Service, said: "The compensation regulations provide protection to the general public from unfair sales techniques by agents for companies operating within the claims management sector.
"When company directors do not comply with legislation that is designed to protect customers and avoidable losses result, The Insolvency Service will seek lengthy periods of disqualification. This should serve as a warning to other directors who may feel tempted to breach customer protection legislation. The Insolvency Service will rigorously pursue directors who deliberately mislead and breach the trust of customers.
"The Insolvency Service is grateful for the assistance provided by the Ministry of Justice, Trading Standards and the Legal Ombudsman."