Compensation Act 2006
As a direct result of the Compensation Act 2006, companies such as us now have to be approved to operate within the Personal Injury Claims Management Sector. The Act came in to force in April 2007 and we are the proud holders of a certificate of authorisation and follow strict guidelines that are set out by our regulatory body, the Ministry of Justice. Our Authorisation number is CRM3364.
The move to a fully Regulated Claims Management Industry is one we welcome and were actively involved in promoting. Indeed, members of our team assisted with Government working parties and pushed the debate towards having the regulatory system that we now operate within. We now feel that victims of accidents, who wish to launch No Win No Fee Accident Claims, can be sure of an open, ethical and honest partner when they choose a company to manage their accident claim.
Why have a regulated Claims Management Industry?
Prior to the Government creating a law, which legally requires any person or company operating within the Personal Injury Claims sector, there were no restrictions on who could get involved in this industry or how they could operate. Clearly, this was not acceptable and whilst the majority of companies operating did so in a proper manner, a hardcore few didn’t. This caused a whole series of problems for claimants wishing to lodge a claim. Individuals ended up out of pocket, people were harassed in to making a claim, Solicitors were provided with falsified versions of events and Insurers could not be certain that claims were genuine.
There was a genuine case of all Claims Management Companies being tarred with the same brush. Those in the majority who were genuinely acting in the clients best interests were indistinguishable from those that were dishonest and feathering their own nests.
Fortunately for us, the move to a fully regulated sector has banished the less scrupulous firms and practices. We no longer get tarred with the same brush as the firms who operated in a less than squeaky clean manner.
Famous cases of unethical Claims Management practices
The two most famous exposures of bad practice were the collapse and folding of Claims Direct and The Accident Group (more commonly known as TAG).
Claims Direct were the first big No Win No Fee Company to operate in the Personal Injury Sector in the UK. They initially did great things, before their demise lead to the Sun labelling them ‘Shames Direct’. The demise of Claims Direct hit the headlines when it emerged that the compulsory insurance premiums that they had forced their clients to sign up to were wiping out customer compensation settlements. Unsurprisingly, Claims Direct never recovered from the public relations disaster and later went under.
TAG caused a messy stir of their won when they admitted to sacking 2,400 employees by text message after the company ran out of money to write new business. The No Win, No Fee Company, was placed in the hands of administrators Price Waterhouse Coopers, who had a hard job fending off claims from employees who say TAG never bothered paying commissions and fees that had been earned. To make matters even worse, clients of TAG who succeed in winning their cases (estimated to be about 70 per cent of 100,000 customers) were informed that despite the demise of TAG, they might still receive money because the policies that they forced their clients to sign guaranteed a minimum payout of £500 if a claim was successful, but that winnings may be significantly reduced. Under the terms of TAG policies, personal injury victims were made to take out an insurance policy of between £800 and £900. The company believed that this sum would be recovered when a claim was won, as it would be argued that this was a legal fee. Unfortunately, this was not the case and this very belief caused numerous TAG employees to lodge fake claims. After all, the company got a massive commission on every policy taken out. This commission was paid regardless of the claim and regardless of the outcome. Why would a company worry about honest claims if they could make a nice sum of money for every client they signed up? It was rumoured that TAG customers would be liable to make up most of the shortfall, which would have to be paid to the policy insurers and to TAG bankers.
What does the regulatory status mean to clients?
The Regulatory Authority rules mean many things to clients. There have been some key rules that offer genuine choice, safety and transparency to all members and parties operating within the No Win No Fee industry. Firstly, no company or business is allowed to offer claims management services unless they are authorised to do so. Any businesses doing so without approval should be reported. To do so, either call us or visit the Ministry of Justice website and tell them.
The regulator has also outlawed various marketing methods used by the less scrupulous firms. Cold Calling is no longer allowed. Trawling around housing estates, knocking doors and harassing people are now banned. Further, companies can no longer aggressively advertise or harass people in Hospitals. Wording such as No Win No Fee must now be qualified and we are obliged to inform individuals and clients how we make our money, who pays us what, when and how.
We also offer a proper published Complaints procedure, although this has never been used against us!
Also, we are now obliged to have Professional Indemnity Insurance.
Who you gonna call?
Direct 2 Solicitors are approved for Regulated Claims Management Services by the Ministry of Justice (Authorisation CRM 3364) and are also members of the Claims Standards Council. We offer genuine peace of mind, honesty and a friendly caring service.
If you are in need of a reliable and approved Claims Management Company to manage your accident compensation claim, look no further. Email us at webenquiries@direct2solicitorsltd.co.uk, call us on 0800 9177456, or get us to call you, using the big blue "Call me back" box at the top right of this page.
As a direct result of the Compensation Act 2006, companies such as us now have to be approved to operate within the Personal Injury Claims Management Sector. The Act came in to force in April 2007 and we are the proud holders of a certificate of authorisation and follow strict guidelines that are set out by our regulatory body, the Ministry of Justice. Our Authorisation number is CRM3364.
The move to a fully Regulated Claims Management Industry is one we welcome and were actively involved in promoting. Indeed, members of our team assisted with Government working parties and pushed the debate towards having the regulatory system that we now operate within. We now feel that victims of accidents, who wish to launch No Win No Fee Accident Claims, can be sure of an open, ethical and honest partner when they choose a company to manage their accident claim.
Why have a regulated Claims Management Industry?
Prior to the Government creating a law, which legally requires any person or company operating within the Personal Injury Claims sector, there were no restrictions on who could get involved in this industry or how they could operate. Clearly, this was not acceptable and whilst the majority of companies operating did so in a proper manner, a hardcore few didn’t. This caused a whole series of problems for claimants wishing to lodge a claim. Individuals ended up out of pocket, people were harassed in to making a claim, Solicitors were provided with falsified versions of events and Insurers could not be certain that claims were genuine.
There was a genuine case of all Claims Management Companies being tarred with the same brush. Those in the majority who were genuinely acting in the clients best interests were indistinguishable from those that were dishonest and feathering their own nests.
Fortunately for us, the move to a fully regulated sector has banished the less scrupulous firms and practices. We no longer get tarred with the same brush as the firms who operated in a less than squeaky clean manner.
Famous cases of unethical Claims Management practices
The two most famous exposures of bad practice were the collapse and folding of Claims Direct and The Accident Group (more commonly known as TAG).
Claims Direct were the first big No Win No Fee Company to operate in the Personal Injury Sector in the UK. They initially did great things, before their demise lead to the Sun labelling them ‘Shames Direct’. The demise of Claims Direct hit the headlines when it emerged that the compulsory insurance premiums that they had forced their clients to sign up to were wiping out customer compensation settlements. Unsurprisingly, Claims Direct never recovered from the public relations disaster and later went under.
TAG caused a messy stir of their won when they admitted to sacking 2,400 employees by text message after the company ran out of money to write new business. The No Win, No Fee Company, was placed in the hands of administrators Price Waterhouse Coopers, who had a hard job fending off claims from employees who say TAG never bothered paying commissions and fees that had been earned. To make matters even worse, clients of TAG who succeed in winning their cases (estimated to be about 70 per cent of 100,000 customers) were informed that despite the demise of TAG, they might still receive money because the policies that they forced their clients to sign guaranteed a minimum payout of £500 if a claim was successful, but that winnings may be significantly reduced. Under the terms of TAG policies, personal injury victims were made to take out an insurance policy of between £800 and £900. The company believed that this sum would be recovered when a claim was won, as it would be argued that this was a legal fee. Unfortunately, this was not the case and this very belief caused numerous TAG employees to lodge fake claims. After all, the company got a massive commission on every policy taken out. This commission was paid regardless of the claim and regardless of the outcome. Why would a company worry about honest claims if they could make a nice sum of money for every client they signed up? It was rumoured that TAG customers would be liable to make up most of the shortfall, which would have to be paid to the policy insurers and to TAG bankers.
What does the regulatory status mean to clients?
The Regulatory Authority rules mean many things to clients. There have been some key rules that offer genuine choice, safety and transparency to all members and parties operating within the No Win No Fee industry. Firstly, no company or business is allowed to offer claims management services unless they are authorised to do so. Any businesses doing so without approval should be reported. To do so, either call us or visit the Ministry of Justice website and tell them.
The regulator has also outlawed various marketing methods used by the less scrupulous firms. Cold Calling is no longer allowed. Trawling around housing estates, knocking doors and harassing people are now banned. Further, companies can no longer aggressively advertise or harass people in Hospitals. Wording such as No Win No Fee must now be qualified and we are obliged to inform individuals and clients how we make our money, who pays us what, when and how.
We also offer a proper published Complaints procedure, although this has never been used against us!
Also, we are now obliged to have Professional Indemnity Insurance.
Who you gonna call?
Direct 2 Solicitors are approved for Regulated Claims Management Services by the Ministry of Justice (Authorisation CRM 3364) and are also members of the Claims Standards Council. We offer genuine peace of mind, honesty and a friendly caring service.
If you are in need of a reliable and approved Claims Management Company to manage your accident compensation claim, look no further. Email us at webenquiries@direct2solicitorsltd.co.uk, call us on 0800 9177456, or get us to call you, using the big blue "Call me back" box at the top right of this page.
Labels: Accident Claim, Authorisation, Claims Direct, Claims Standards Council, Ministry of Justice, No Win No Fee, TAG, The Accident Group
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