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New laws hitting personal injury firms hard

Personal injury firms

Back in April, we brought you news of swingeing changes to the way injured people can recover compensation for accidents. Now it’s been revealed that since the government’s plans (which were passed last year) became law in April, over 700 personal injury management companies have left the industry.

Figures released by the Claims Management Regulation Unit (CMRU) show that in March 2012 there were 2,435 personal injury management companies compared to 1,700 in June earlier this year. A reduction of around 30%.

The new government plans saw a ban on referral fees being paid between lawyers and claims firms. It also stopped personal injury management companies from taking fees from customers before any written contract has been signed. These new plans aimed to reduce the legal charges that caused care insurance premiums to spike. It was also designed to reduce the number of personal injury management companies who abused their regulated status. Something that these figures would suggest has been a reasonable success.

Speaking on the figures Kevin Rousell, head of the CMRU said:

“It’s our absolute priority to protect customers and we are making certain that firms are following the rules at a time of major change for the claims management industry. We do not tolerate bad practise and continue to take action against companies which break the rules, including removing their licence to trade. We shut down more than 200 last year”.

Justice Minister Helen Grant also said:

“We’ve taken strong action to rein in the rogue firms which have gathered in this sector and the impact is now starting to show. Ending these fees which fuelled a growing compensation culture has been an important step to reducing the cost of living for ordinary people – who have ultimately been footing the bill for them through their insurance premiums”.

Putting your personal injury needs first

While the government’s new plans have certainly shaken up the industry, personal injury firms who abide by the laws and rules won’t suffer any detrimental effects. That’s exactly what we at Fonseca Law are, a claimant firm who plays by the rules.

Our ethos is to treat every claimant as a person and not just another claimant, we provide you with personal and professional advice that gives you all the best possible options available. Our main priority is to help anyone who’s suffered a personal injury through no fault of their own, and we make sure you keep all of the compensation you deserve.

If you've suffered a personal injury that you feel you can claim for, please contact us today and we’ll happily provide you with all the answers you’ll need. You can fill in our online claim form or phone us on 01495 303124. We are also based in Ebbw Vale so if you would rather, you can always come by our office for a more personal face to face consultation.