The Ministry of Justice shut down nearly 350 rogue claims management companies over the last year, according to statistics released last week.

In 2010/11, 349 unauthorised or unscrupulous firms were closed as the ministry clamped down on the exploitation of vulnerable consumers, compared to just 35 closures in the previous year.

The number of CMCs authorised by the MoJ also went up, from 485 in 2009/10 to 576.

The MoJ’s claims management regulation unit was set up in 2007 to protect consumers from firms that sought to gain work by over-selling expectations of compensation pay-outs.

Kevin Rousell, head of the MoJ's claims management regulation unit, said: ‘We have made it very clear to businesses that we are not going to accept any malpractice or attempts to take advantage of vulnerable people.

‘There will be no let up in the coming year. Companies should remain in no doubt that if they breach the rules they will be closed down.’