Compensation Claims Disgrace

The introduction of the Ministry of Justice in 2006 was intended to clean up the compensation industry and weed out the so-called ‘ambulance chasers’ and unscrupulous accident claim management companies that were cluttering the market and in many cases bringing the industry into disrepute with their supposed marketing tactics.

The compensation claims market has been an extremely lucrative industry for many companies over the years, the number of people involved in the chain collecting commissions eventually led the British government to take positive action with the creation of the Ministry of Justice ( MOJ).

Due to its registration process, the Ministry of Justice ensured the reduction of these claims management companies, but the problem seems to have gone underground.

There has been an explosion of ‘data referrers’ in the compensation claims market and many are becoming fraudsters and scammers. Some simply take the details of people who have been involved in incidents and accidents and cold call them to try to find out if they can turn any of them into “leads.”

Before they get leads, these companies get money up front from personal injury attorneys and claims management companies desperate for leads. When the company gets what it thinks is a lead, it just calls to transfer it. However, what they tend to transfer is complete rubbish and many of the poor people who have just been cold called essentially have no idea what is going on.