A firm that pressured holidaymakers into faking food sickness claims has had its licence revoked.
Allsure in Preston, Lancashire was found to have advised people to either completely fabricate or exaggerate sickness in claims against hotels.
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A firm that pressured holidaymakers into faking food sickness claims has had its licence revokedInvestigators from the Claims Management Regulator (CMR) also showed the firm had used deceptive sales scripts – exaggerating expected pay-outs to entice consumers.
CMR head Kevin Rousell said: "We will take firm action against claims businesses which engage in serious misconduct.
"Seeking to encourage false claims will not be tolerated."
A spokesperson for the Association Of British Travel Agents (ABTA) added: "We hope their investigations will result in similar action against other firms who are doing the same."
The travel industry and the courts have been cracking down on fake sickness claims made by tourists over the summer.
Brits abroad who fake food poisoning on holiday to get compensation have been warned they could face prison.
Alamy
The company was found to have advised people to either completely fabricate or exaggerate tummy bugs in claims against hotelsAbta claims cowboy firms are falsely telling holidaymakers that they won't be prosecuted if theyfalsely claim to be unwell.
They even bombard returning Brits with cold calls and messages on social media asking to submit sickness compensation claims following their holiday.
SO GRUB-BY Fake food poisoning claims by UK holidaymakers are making Britain a laughing stock, says Thomas Cook bossIn the past 18 months, UK holidaymakers submitted almost 4,000 sickness claims.
That compares to just 114 from Germans and 39 Scandinavians.
But penalties for those found to be lying include a fine, criminal record and potential imprisonment either in the UK or in the destination of their holiday.
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Brits abroad who fake food poisoning on holiday to get compensation have also been warned they could face prisonTracey Krieger, of north-west London, received calls from cowboy firms after returning from an all-inclusive break in Mexico.
She told the Daily Mail: "It really annoys me that these companies can get away with this, it is dishonest and we will all end up losing out as this will cause holiday prices to rise."
Abta's chief executive Mark Tanzer said: "People tempted to fabricate holiday sickness in order to make a claim should be aware that this is a crime and that they risk ending up in jail either in the UK or abroad."
A government initiative is now planning to wipe out rogue companies encouraging Brits to make fake claims.
Last month it emerged the Ministry of Justice had issued six warnings and got six cowboy websites taken down.
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Source: Company that pressured holidaymakers into faking food sickness claims has its licence revoked
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