Clampdown on claims management companies welcomed by Freeclaim Solicitors
There has been a major clampdown on Accident Claims Management Companies (CMCs) who do not follow industry standards.
A thorough overhaul of the claims management market is long overdue. Victims of accidents need to be assured of qualified legal advice. I would always recommend that anyone thinking of making a claim for compensation seeks advice and help from a specialist personal injury solicitor, rather than approaching a claims management company”.
There has been a major clampdown on Accident Claims Management Companies (CMCs) who do not follow industry standards. Recent Government statistics show a decrease in the number of accident claim companies in the market by over 1,000 in January 2014. The number of CMCs rose to a high of 2,553 in December 2011. Updated figures show that as of January 2014, there are now just 1,400 CMCs dealing with personal injury claims.
The Head of the Claims Managements Regulation Unit (CMRU) commented on the reduction of CMCs saying. “We do not tolerate bad practice and are continuing our work to drive malpractice out of the industry. Since the referral fee ban came into effect in 2013 we have inspected more than 900 CMCs and seen 500 leave the personal injury market”.
It was believed that many CMCs were responsible for bombarding people with millions of accident claim texts and also for generating leads through cold calling – something that has been banned for many years. No companies are allowed to cold call potential clients about claiming compensation after an accident. The Information Commissioner’s Office (ICO) has prosecuted many companies for using these methods to try and persuade people to make compensation claims.
The referral fee ban was supposed to put a stop to these companies obtaining potential claimant’s details, and referring mass numbers of claims to other companies, which would then be dealt with in an unsatisfactory manner.
It has gone some way to stop a number of claims companies flouting the rules, but there are still companies who are texting and cold calling potential clients. If you have received any spam text messages or calls from companies trying to make you put forward a claim for compensation, these should be reported to the relevant agencies as soon as possible.
Many accident claims companies simply do not have the legal knowledge and expertise to adequately deal with personal injury compensation claims. As a result, people may not be receiving the legal advice they need, and the compensation they deserve.
Alastair Fernie, Managing Director of Freeclaim Solicitors welcomes the clampdown on CMCs, “A thorough overhaul of the claims management market is long overdue. Victims of accidents need to be assured of qualified legal advice. I would always recommend that anyone thinking of making a claim for compensation seeks advice and help from a specialist personal injury solicitor, rather than approaching a claims management company”.
Freeclaim Solicitors have over 25 years’ experience in personal injury claims. They are also completely independent which means they do not have ties with any CMCs or insurers, and more importantly means they will only act in your best interests.
To find out more about how Freeclaim Solicitors could help you following an accident, visit their website http://www.freeclaim.co.uk
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