Ambulance chasers verging on extinction
The Ministry of Justice's (MoJ) has said it has stamped out unauthorised marketing and advertising practices aimed at personal injury claimants.
In it first annual report, the MoJ said better regulation had significantly reduced cold calling, while the practice of 'ambulance chasing' - approaching injured parties at hospitals with a view to handling their claim - has also been almost entirely eradicated.
Justice minister Bridget Prentice said: "The regulation has put in place vital safeguards for consumers when using the services of claims management companies and is raising standards across the industry.
"The new rules that claim managers must now follow have cleaned up the industry. Consumers can have more confidence that they will be dealt with fairly when seeking to make a claim."
The MoJ emphasized its implementation of a code of conduct, and the necessary authorisation of all companies that wish to engage in PI claims handling activities and referrals.
A statement released by the ministry said: "This will ensure that consumers are given clear information about the options available for pursuing their claim and the associated costs. If an authorised person fails to comply with the rules the regulator can take appropriate disciplinary action.
"Other successes include a strategy developed to deal with outright fraud like contrived accidents and a significant reduction of malpractice by companies handling claims made to the Criminal Injuries Compensation Authority, with some businesses voluntarily leaving the market.
"The speed in which regulation was introduced - nine months from Royal Assent to the Act being fully in force - and the success in raising awareness among businesses who would need to be authorised resulted in three times more businesses coming forward than had been anticipated. The flexibility in the legislation and the regulatory framework means we can respond to such demands quickly."
