'Ambulance Chasers' Now Regulated

Full regulation of claims management services was announced by the government this month. Often labelled as 'ambulance chasers', most of these companies are not firms of solicitors, but tender the work out to a bank of solicitors and ahve to date not been regulated. Much of daytime TV and Radio advertising is taken up by these firms, encouraging spurious injury claims in many cases and blamed for the current 'claims culture' which is used by tabloid press to denegrate the rights of workers to be protected from harm whilst at work.

From April 23rd all claims management companies will be regulated by the Department for Constitutional Affairs. Those authorised to provide the regulated services must follow strict rules of conduct. This will ensure that consumers are given clear information about the options available for pursuing their claim. If an authorised person fails to comply with the rules, the Regulator will be able to take disciplinary action.

The regulation will help:

* reduce malpractice including high pressure selling;
* stop unauthorised marketing activity in hospitals;
* reduce misleading advertising;
* deliver clearer and more transparent contracts; and
* ensure that authorised persons have a clear mechanism for dealing with consumer complaints.

A baseline study has also been published today which provides an analysis of the sectors being regulated and outlines the strategy for dealing with malpractice.

Bridget Prentice said:

"I am delighted to announce today the full commencement of claims management regulation. Appropriate action will be taken against those who wilfully flout the law.
The strict rules with which authorised persons must comply will help raise consumer confidence. The regulation has put in place vital safeguards for consumers when using the services of claims management companies and I am confident that it will also help raise standards across the industry. The regulation has been delivered in record time and I am grateful for the widespread support that has made this possible. I hope we can continue to work together to make regulation more effective".

Around 800 organisations have so far been authorised, and consumers will be able to check if a company is authorised by using the search facility for authorised persons provided on the Claims Management Regulation website at http://www.claimsregulation.gov.uk

Consumers can also call the claims management regulation general enquiry number on 0845 450 6858.

Source: GNN


 
 
Icon: back to news
 

Designed, Hosted and Maintained by Union Safety Services