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Compensation Claims - Cold comfort for claims farmers

Sir David Clementi has put consumers at the centre of a properly regulated legal system, but persona injury lawyers are bitterly disappointed that claims management companies appear to have slipped through the regulator y net yet again.

Clementi has shied away from the issue and has put additional pressure on the government which must, surely, now step in to ensure claims management companies are properly regulated.

‘The Lord Chancellor has suggested these companies are effectively drinking at the last chance saloon unless they clean up their act. The Clementi review has not felt able to take the step of properly defining legal services to include claims management companies so now the government must act.

The government has dithered for years over this issue, and Clementi has now failed to deal with it. It really is time someone – and it has to be government – grasped this nettle.

Calls from the Citizens Advice Bureau to regulate claims farmers and ‘high pressure sales tactics’ of unqualified intermediaries have also been supported by APIL.

The association has repeatedly called on the government to regulate unqualified operators who tout for personal injury claims – often at the expense of injured people.

There is absolutely no need for an injured person to go through a middle man. We have always said that these operators see injured people as nothing more than a business venture.

‘We fully support the report from Citizens Advice which makes it crystal clear that the regulation is essential to curb the aggressive sales methods used by many claims farmers, and to ensure injured people receive the full amount of compensation to which they are entitled.’

APIL’s comments follow an interview by the Lord Chancellor, reported in the last edition of Legal & Medical in which he spoke out against the compensation culture.

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