Dean Anthony Spencer, the director of Claim & Gain Limited, was banned by the Insolvency Service for misleading customers and breaching government regulations.
The business, with Spencer as director, misled the public in sales calls regarding claims services offered, fees charged, outsourcing to third parties and cancellations.
Services paid for by customers were not provided and fees were deducted from customers without their authorisation.
Spencer was investigated and warned by the Ministry of Justice over unfair trading practices, but despite that he failed to rectify the breaches and continued to mislead clients by taking upfront fees from a further 149 customers.
Claim & Gain, which was based in Swansea, was placed into voluntary liquidation on 19 March 2015 owing £650,876.
Insolvency Service investigations group leader Robert Clarke said the service would look to crack down heavily on misbehaving directors.
“This should serve as a warning to other directors who may feel tempted to breach customer protection legislation. The Insolvency Service will rigorously pursue directors who deliberately mislead and breach the trust of customers,” he said.