The Ministry of Justice has now shut down 100 claims management companies for misleading the public about debt repayment since its 2007 opening.
Companies that became casualties of the crack down were stripped of their authorisation for failure to comply with claims regulation conduct rules, ignoring requests for information from the regulator, criminal convictions for fraud, persistently misleading marketing and non-payment of regulation fees.
"Misleading claims that debt can be written off as unenforceable, high pressure selling and cold calling in person will not be tolerated," said a ministry regulator.
Customers who fall victim to poorly operating debt managing companies can find themselves paying large fees for the belief the debt will be resolved and later discover that is not the case.
The regulator continued: "There has also been a trend towards high pressure cold calling from call centres, including making unsubstantiated claims and encouraging people into handing over fees there and then - a decision they regret later."
The ministry suggests those seeking the services of a claims management company should be wary of broad statements of wiping debt clean in a short amount of time.
Debtors should not be pressurised into making any spot decisions or handing over money right away. Also, it is best to consult with a financial adviser when dealing with financial problems.
"It is important that consumers make fully informed choices about whether to make a claim and whether to use the services of the company that has approached them," the MoJ spokesperson continued.
"Consumers must be given clear information about the options available for pursuing their claim, realistic chances of success and the costs of doing so."