Some Claims Companies Still Avoiding
Regulation 7 Months On! 6/11/07
From April 2007 all Claims Companies have had to be registered with the Ministry of Justice and adhere to strict controls to ensure the protection of the public. However, the Ministry of Justice has warned that a number of claims companies are still avoiding regulation.
Apparently some claims companies have held themselves out to be marketing businesses that do not require regulation at all. However, the rules are strict and any company having any involvement in personal injury claims is likely to require regulation. Companies avoiding regulation face the chance of heavy fines and possible disqualification from trading.
Perhaps of even more concern is solicitors accepting claims from non regulated companies. Kevin Roussell of the MOJ wishes to ensure that solicitors are aware that they might be targeted and drawn in by such companies.
The Compensation Act 2006 has proved successful already. One of the main purposes of the act was to prevent so called "ambulance chasing" and the regulations have achieved this by stopping the cold calling of potential accident victims. There has also been a 90% reduction in unauthorised advertising in hospitals which has not helped with the bad name of some claims companies.
1stclaims Comment
1stclaims was one of the first companies to be approved for regulation and has never engaged in cold calling or so called "ambulance chasing".
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