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Claims management crack down

The claims management business has been rapidly growing over the last few years, but now steps have been taken by the Claims Management Regulation Unit to eradicate some of the dark horses and rouge traders of the industry. These businesses run claims largely on personal injury matters but also around other losses such as, payment protection insurance matters and property losses.

These firms have started using tactics like excessive cold calling and text messaging, and with the highly advertised matter of missed sold PPI many of these firms have been able to make a large amount of revenue. The unit has said that it wants to especially crack down on these firms that are conducting unsolicited calls and text messages.

The Ministry of Justice has said that 900 companies have been shut down over the last five years, with 209 of these between April and November of 2012. In addition to this crackdown the government is making moves to protect consumers more against businesses such as this by making written contracts common place and also give consumers the right to contact the Legal Ombudsman who will then able to award compensation to consumers who have been victims of rogue management firms.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Setfords Solicitors are a national full service law firm, with personal injury Solicitors in London and across the country.