200 rogue claims management companies have been closed down by the Ministry of Justice.
The Ministry of Justice regulates the claims management industry. Claims management companies (CMCS) operate as middlemen offering their services to people with personal injury claims and debt problems. They offer to help people claim personal injury compensation.
There are now more than 3,000 CMCS operating in the UK.
The Claims Management Regulation Unit has shut down 200 CMCS because of breach of rules including unwanted cold calling in person, by telephone and by text messages. Some CMCS are involved in misleading marketing campaigns. They offer unfair upfront fees to people who have been injured in accidents. You may receive a text message on your mobile phone informing you that your injury claim is worth, say £3,750. Some of our clients have recieved text messages originating from mobile phone number: 07876149908. This number and many others are being used by rogue claims management companies. Don't fall for it, it's a scam. Don't respond to them, they can be aggressive and rude to the extent that they may threaten to come and beat you up as they did to one of our clients.
Some rogue accident claims companies use aggressive marketing ploys and engage in the so called “cash for crash” frauds.
Other CMCS offer the chance to “write off debts of over £5,000 with a government-backed solution”. Their advertisements appear in newspapers, magazines and online. People are bombarded with telephone calls and text messages.
Many CMCS charge upfront fees of up to £600 plus VAT to examine cases to decide whether their clients have a case worth pursuing. This amount is non refundable if the claims company concludes that your claim has no chance of succeeding.
Kevin Rousell the head of the Claims Management Regulation Unit, said:
“Many of the firms (CMCS) provide a valued service, helping people who might not otherwise be able to afford to have access to justice.
But there are some which mislead people or carry out various kinds of malpractice, deliberately or otherwise, and we are working hard to ensure they either bring their practices in line, or stop altogether”.
If you have been injured in an accident you deserve help from a legitimate personal injury firm of solicitors specialised in helping people get compensation. There are many fine solicitors firms in the UK and you can approach them direct. Most of them do not charge upfront fees. They work on a No Win No Fee basis. Get our Free Special Report “Choosing the right Solicitor to handle your claim”. Don’t get caught out by rogue accident claims companies.