In the last 12 months it has become apparent that the Ministry of Justice (MoJ) have closed down approximately 20% of claims management companies registered with the MoJ, according to extraordinary Ministry of Justice figures obtained by the Law Society Gazette.
734 separate claims management businesses have been confirmed by the MoJ as being “cancelled” in the year ending March 2012. Although on March 31, 2012, 3018 claims management companies were still registered with the MoJ – that compares with approximately 11,000 law firms in England and Wales. The closures of these firms were a result of 9570 public complaints relating to the behaviour of these claims management companies.
Also, it became apparent that the number of staff employed by the MoJ in relation to claims management regulation has increased by 25 2012. The MoJ has similarly estimated that the actual cost of regulating these (of which the regulation is financed by the companies themselves) increased to an astounding £2.5 million per annum, up 17%.
Predominantly selling on accident claim and medical negligence compensation leads to personal injury solicitors for a huge referral fee, claims management companies also sell on personal protection insurance claims and other areas of law, including employment law and a variety of other claims.
This website is entirely owned and run by Personal Injury Solicitors Bonallack and Bishop. We are proud that none of our accident compensation or medical negligence claim cases come from such claims management companies – we don’t pay for personal injury claims – as we simply don’t need to, and again unlike many other law firms, our personal injury claim caseload continues to grow. We have been concerned by the behaviour of many of these companies for some time – especially by the unnecessary level of costs they impose on all areas of law.
Our advice – avoid all claims management companies and for advice you can trust go straight to a reputable firm of specialist accident solicitors – like us !