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    "If you've been injured through no fault of your own you could be entitled to compensation. If you're unsure if you could claim, I recommend you call Accident Advice Helpline."

    Esther Rantzen

    Health and Safety News

    Claims firms close after crackdown

    By David Brown on July 24, 2013

    Hundreds of claims management companies have closed following the introduction of stricter laws to regulate the industry, the Government has said.

    The number of firms registered to deal with personal injury claims fell from 2,435 in March last year to 1,700 in June this year, figures by the Claims Management Regulation Unit (CMRU) show.

    Extracting the bad apples

    Changes to the law around no-win, no-fee* deals were passed by the Government last year and brought into effect in April to reduce negligence in the industry.

    These include a ban on referral fees paid between lawyers and claims firms, while claims management companies are also not allowed to take fees from customers before a written contract has been signed.

    The claims industry has seen a lot of malpractice in the past, but clients of
    Accident Advice Helpline can rest assured they will receive a professional and risk-free service.

    The CMRU, which is based at the Ministry of Justice, is responsible for regulating companies which advertise for claims and handle them on behalf of people seeking personal injury compensation.

    Personal injury sector

    CMRU head Kevin Rousell said: “It is our absolute priority to protect customers and we are making certain that firms are following the rules at a time of major change for the claims management industry.

    “We do not tolerate bad practice and continue to take action against companies which break the rules, including removing their licence to trade. We shut down more than 200 last year.”

    Justice minister Helen Grant said: “We have taken strong action to rein in the rogue firms which have gathered in this sector and the impact is now starting to show.

    “Ending these fees which fuelled a growing compensation culture has been an important step to reducing the cost of living for ordinary people – who have ultimately been footing the bill for them through their insurance premiums.”

    Source: Gov.uk

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    Date Published: July 24, 2013

    Author: David Brown

    Accident Advice Helpline (or AAH) is a trading style of Slater Gordon Solutions Legal Limited. Slater Gordon Solutions Legal Limited is a company registered in England and Wales with registration number 07931918, VAT 142 8192 16, registered office Dempster Building, Atlantic Way, Brunswick Business Park, Liverpool, L3 4UU and is an approved Alternative Business Structure authorised and regulated by the Solicitors Regulation Authority. Authorised and regulated by the Financial Conduct Authority.

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    No-Win No-Fee: *Subject to insurance costs. Fee payable if case not pursued at client's request.