PPI texts firm is banned by advertising watchdog

Claims management firms which bombard people with annoying payment protection insurance and accident texts have been slammed by the Advertising Standards Authority. The watchdog has ordered Indian firm Data Supplier to stop.

The ASA upheld complaints about the Mumbai firm. It accused its texts of being misleading, unsolicited and containing claims that could not be substantiated. The advertising watchdog also rapped the firm for not identifying itself in the texts.

A massive claims industry has built up around the PPI mis-selling scandal. People have been targeted by rogue claims managers hoping to make a quick profit by taking a third of compensation that people may be owed. But consumer groups point out that it's simple for anyone to claim and avoid handing over cash to third parties.

"You can make a claim for mis-sold PPI for free yourself," said Citizens Advice's chief executive Gillian Guy.

Meanwhile the Building Societies Association warned this year about the high number of compensation claims the industry is receiving from people who never had PPI. It said the number of dodgy claims pushed through by commission-hungry claims management companies had soared by 247 per cent in six months.

Last month, the Information Commissioner's Office ordered Tetrus Telecoms to pay £440,000 after it was found to have sent as many as 840,000 unlawful spam texts per day over three years.