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.
