The total number of claims firms shut down now stands at more than 1,100 since the start of regulation in 2007.

According to MoJ figures, there were 2,254 claims firms in the UK in November 2013, compared with 3,367 in 2011 – the industry’s peak. 

The greatest fall was in the personal injury claims sector which has seen the number of claims firms fall by more than 1,000 from a peak of 2,553 in December 2011 to around 1,400 last month.

Justice Minister Shailesh Vara said: “With rigorous new measures being brought in across the board, we are taking strong action to rein in the rogue firms operating in this sector.

“Continued action to remove licenses from companies with poor practices alongside forthcoming Claims Management Regulation reforms, proves just how much work is going on to get tough on companies that defy the rules and bombard the public with unwelcome calls and misleading information.”

Claims management firms have flourished following the payment protection insurance (PPI) mis-selling scandal. Calls are often automated and are made to people who never bought the product, but who are told they can make a claim.

Kevin Rousell, head of the MoJ’s claims management regulation unit, said: “We have made it very clear that it is our absolute priority to protect customers and help organisations and businesses that are on the receiving end of high volumes of speculative claims which can clog up the system.

“We are making certain that firms are following the rules at a time of major change for the claims management industry.”