Accident Claims Giant Slams Industry Regulators for Failing Consumers

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It’s scary isn’t it – the reality of being thrown head first into Christmas wondering how it came round so quick – again! 2013 has seen some significant legislative changes in personal injury that critics argue has had a devastating effect on the public.

accident claims
Some of the country’s biggest problems could have been avoided by protecting consumers from the offset and regulating rather than cashing in

Forget personal injury solicitors panicking about their inability to purchase cases. Likewise, forget accident claim companies fretting about their loss in revenue from selling those cases. Leading personal injury solicitors Accident Claims have voiced the real concern – the impact that the reforms have had on the public and the general impact on the competition in the marketplace.

When asked about how he would have reformed the industry, boss Josh Donn commented. “For a start, devising a plan that would ultimately see the demise of some of the most reputable firms in the country can’t be in the consumer’s best interest. Devised because of an apparent spiralling claims culture, the referral fee ban has led to Scores of reputable firms falling by the wayside. Government representatives and regulators should hold themselves responsibility if a compensation culture has been created in Britain. If we look at the bottom line, how can a government regulator issue a license to operate to anyone who completes the form."

In some cases personal injury solicitors are paying indemnity insurance premiums of over £300,000 per annum, a testament to the sort of responsibility and ilk needed to represent clients in the legal industry. There are similarities with the negative press surrounding pay-day loan lenders and some question the ease of a new competitor entering the marketplace with little or no experience.

Donn adds, “Some of the country’s biggest problems could have been avoided by protecting consumers from the offset and regulating rather than cashing in. In terms of personal injury, thousands of claims management companies emerged and the Ministry of Justice simply opened the doors and cashed in. Between the Solicitors Regulation Authority and the Ministry of Justice, the public have been severely let down.”

At one point 8 out of the top 10 listings on Google promoting compensation claims appeared to be either an unregulated firm or failed to adhere to compliance rules regarding the content on their sites.

Accident Claims argue that they have reported a string of non-compliant consumer sites to both regulators but no action was ever taken.

Speaking at his home earlier this month Donn continues his assault. “It’s ludicrous that Google actually offers more assistance in monitoring online crooks than our own industry regulators. The ministry of Justice fail to make consumers aware that they have a profit share with claims firms ultimately questioning how objective and opposed they really are to what is happening."

Accident Claims will launch 2014 by bringing honest personal injury services back to the high street. Online since 1997 they are now set to open their first walk-in claims bureau. Weekly clinics will be offered through the bureau network providing consumers with free advice in relation to personal injury and compensation claims.

Despite 2013 seeing a 35% drop in the number of regulated firms, the number of claims has continued to be consistent. Critics claim that the problem we now face is high numbers of claims are being handled by firms with little or no experience who simply know how to market. The way consumers look for law firms has changed and maybe regulators now need to step up to the plate to monitor the online rising presence of non-compliant and fraudulent claims companies.

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Holly Paley
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since: 11/2010
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