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Regulation of Claims Management Companies Could Re-Shape The Industry

Press release November 5, 2012

This Thursday sees a meeting between MPs and key government figures to discuss the regulation of claims management companies could re-shape the industry.

Regulation of claims management companies1

It is an issue that has long been overdue attention at the highest levels; regulation of claims management companies.

Thursday 8th November brings key Government advisors and MPs together to discuss this matter in a planned three hour meeting, two of the main areas of claims management up for discussion are personal injury claims as a result of car accidents and PPI claims management.

PPI claims management companies have been held in a very negative light over the past few years with them almost being seen as operating like Dick Turpin; in a nutshell their service is almost robbery!

People have a legal right to simply contact their bank or provider of credit who they signed up for PPI with, stating they feel that it was mis-sold. Billions of pounds has been put aside for PPI compensation by the banks who quite often never challenge it, yet people still end up using a PPI claims managent company.

This often leads to the company charging 25 - 30% of the awarded compensation for doing little more than sending a letter on the behalf of the claimant, if there award is small they would be left with virtually any compensation as a result.

The way PPI firms have looked to generate leads via SMS text is one such act that has brought huge numbers of complaints from  the general public of the UK.

Road accident related personal injury claims will also be under the spotlight due to the rise in claims of whiplash and other injuries.

This meeting has been long overdue, however it remains to be seen what effect it will have on the sectors and how it will shape the future of claims management companies.

As with any industry there are good and bad elements, without a shadow of a doubt it is the rouge traders who get most media coverage, however it should be made clear there are also positive, legitimate claims management companies who offer a great service.

The content for this story has been provided by Car Crash Claims UK, a genuine free road accident claims advisory service. Please visit this link for more information on the story http://carcrashclaimsuk.co.uk/regulation-of-claims-management-companies-on-the-agenda/.

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