Bosses of nuisance cold call firms face fines of up to £500,000 as ministers finally close legal loophole
- Historically firms that illegally bombarded people with calls escaped fines
- Companies shut down, declared bankruptcy and re-opened under new identity
- From today directors responsible for illegal calls will be personally fined
Bosses of nuisance call firms will be hit with fines of up to £500,000 as ministers close a legal loophole that has let them escape sanction.
Historically, firms that have illegally bombarded people with calls have escaped fines by shutting down, declaring bankruptcy and re-opening under a new identity.
From today, individual directors responsible for illegal calls will be subject to personal fines.
Bosses of nuisance call firms will be hit with fines of up to £500,000 as ministers close a legal loophole that has let them escape sanction (stock image)
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Billions of unsolicited calls – such as those encouraging PPI claims – are believed to have been made in the last year, with 10,000 reported to consumer watchdog Which? in the last six months alone.
Previously, only the business itself was liable for fines.
Digital Minister Margot James said there is now ‘no hiding place for the small minority of rogue directors who have previously tried to escape justice’
Ofcom estimates British consumers were on the receiving end of 3.9 billion nuisance phone calls and texts last year.
Digital Minister Margot James said: ‘There is now no hiding place for the small minority of rogue directors who have previously tried to escape justice.
‘We are determined to stamp this menace out and this new law is the latest in a series of measures to rid society of the plague of nuisance calls.’
Andy Curry, head of the ICO’s nuisance call enforcement team, said: ‘We welcome this amendment to the law, which will increase the tools we have to protect the public.
‘It will mean we can recover the fine more easily and also make it much harder for unscrupulous operators to set up in business again.’
The ICO issued fines totalling £1.9 million to 23 companies for nuisance marketing in 2016-2017.
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