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Personal injury solicitor news
12/04/2007

New claims management ruling

As of 6th April 2007 there was a change to the claims management industry in the UK, which is bound to have an impact on those making no win no fee personal injury claims.

The Department for Constitutional Affairs (DCA) will be bringing the Claims Management Services Regulation into force under the Compensation Act 2006.

This regulation applies to compensation claims made for personal injury, including work-related injury, disease or disability; criminal injury; industrial injuries disablement benefit; employment matters; housing disrepair; as well as financial products and services.

All companies that provide a regulated claims management service need authorisation but in addition to this all those who refer their clients to claims management companies and those that represent clients who are making claims will need authorisation also.

The only people exempt from the need to be authorised are those already regulated, registered charities, not for profit advice agencies such as the Citizens Advice Bureau and some trade unions.

Small scale introducers, specifically recovery operators, where claims management is incidental to their main business, are also exempt from being authorised if they do not receive payment for more than 25 compensation claims cases per quarter.

If you think that this applies to you and your business it is wise to find out more details. All applications for authorisation must be accompanied by an application fee which ranges between 400-800, depending on company turnover. An annual fee is also payable.

This will hopefully clear the way for all the genuine claims management companies who provide excellent and honest customer service and who will be seen as approved businesses in the eyes of the public. It will also act to protect customers from unscrupulous claims companies and ambulance chasers who are unlikely to receive authorisation and gradually disappear form sight.

The Claim Solicitors, the no win no fee personal injury compensation claim experts, are now proud to announce that we are under the regulation of the DCA when considering regulated claims management activities.

For more information about who needs to be authorised under the Compensation Act 2006 please visit www.claimsregulation.gov.uk.