The True Cost of Accident Claims Companies?
The long awaited Compensation Act 2006 is now law. The Act regulates Claim Management Companies and how they handle the claims of accident victims.
Claims Management Companies usually market themselves as “Accident Specialists” They are often in fact middle men or marketing companies who seek out accident victims and sell their cases on usually to solicitors for a fee.
It is a sad fact that some of these companies are less than open with their clients as a result of which the monies eventually paid to the victim end up being far less than the compensation actually recovered supposedly for the victim. The balance usually ends up in the pockets of third parties including the companies themselves and the lawyers they employ. The main aim of the Compensation Act is to prevent such abuses to ensure that Claims Management Companies are strictly regulated and that their clients the victims or their relatives are fully protected.
Under the Act all Claims Management Companies must be authorised by 23rd April 2007. Trading without a licence after that date becomes a criminal offence. It is expected that a number of Claims Management Companies will simply choose not to apply for a licence because they will be unable to comply with the new legal requirements. Others may try for a licence but will not succeed for the same reason.
Leading figures in the case management sector are worried that this could lead to a flood of accident victims being without representation or at worst simply being abandoned altogether. It is therefore important that anyone whose case is being handled by a case management company should contact the company or the firm of solicitors handling the case to ensure that arrangements are in place for the proper continuity of their claim.
Any such person who is not totally reassured should take immediate steps to have their case and their file transferred to a licensed claims management company or a firm of solicitors specialising in the handling of personal injury claims. It is important to act promptly since time is critical in such claims and cases can easily become time barred meaning the accident victim being totally deprived of his rightful compensation.
Brearleys Solicitors have a specialised team of personal injury lawyers. We handle a large number of accident claims from simple road traffic accidents to the more complex cases for example industrial injuries and diseases and all cases involving very serious injuries.
We do not take anything from the accident victim’s compensation. There are no hidden fees or commission.
Among our many cases are those that have been referred to us by other lawyers who do not have the required knowledge or experience to deal with them. Others are clients who for their own reasons have decided to transfer their cases to us from their previous representatives.
Brearleys are therefore used to dealing with claims that have been started by others whether case management companies or other solicitors. Should anyone have any concerns about their cases because of the new legislation or for any other reason they should contact us without fee for an informal consultation. If it turns out that those concerns are misplaced then we will take no further action. Otherwise we will discuss the case and whether it is a case we can take over.
For those persons who have had an accident recently and who need advice whether to pursue a claim we advise that they contact a firm of solicitors who specialise in personal injury cases. If you prefer to use a claim management company please make sure that you are dealing with a properly licensed organisation.
Martin Oliver - September 2007