Has Regulation Improved the Compensation Claims Market

July 9th, 2008

Compensation Claims Disgrace

The introduction of the Ministry of Justice in 2006 was intended to clean up the compensation industry and remove the so called ‘ambulance chasers’ and unscrupulous accident claims management companies who were saturating the market and in many cases bring the industry into disrepute with their so called marketing tactics.

The compensation claim market has been an extremely lucrative industry for many companies over the years the amount of people involved in the chain taking commissions eventually led to the British Government taking positive action with the creation of the Ministry of Justice (MOJ).

Due to its registration process the MOJ secured the reduction of these claims management companies but the problem appears to have gone somewhat underground.

There has been an explosion of ‘data referrers’ in the compensation claims market and many are just turning out to be chancers and con artists. Some simply take the data of people who have been involved in incidents and accidents and they cold call them to try and investigate whether they could turn any of them into ‘leads’.

In advance of getting any leads these companies are getting money up front from personal injury solicitors and claims management companies desperate for leads. When the company gets what they believe to be a lead they simply call transfer the same through. What they tend to transfer through however is complete rubbish and many of the poor people who have just been cold called essentially haven’t a clue what is going on.

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