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Accident victims are now protected from unregulated ambulance chasers and claims management companies who keep large percentages of accident compensation intended for victims and their families. Claims management companies are a “middle man” for personal injury claims, who obtain details from accident victims and sell them to solicitors.

Claims management companies have developed a bad reputation over the last few years for dubious business practices including persuading people injured after an accident to sign credit agreements to fund expensive charges for the benefit of the claims management company, which has resulted in large deductions from their accident compensation. One of the most familiar is The Accident Group, which told staff via text message that they were sacked and their wages unpaid when the company was dissolved.

From 23rd April 2007, all claims management companies must be regulated.

Victoria Jones, Personal Injury Partner at leading Leicester law firm, Lawson-West, said, “Regulation of Claims Management Companies is long overdue as this will reduce the suspect business practices of some companies and provide protection to the public.

“Victims of accidents do not need to use claims management companies to make a claim for compensation. They can contact a specialist firm of Personal Injury Solicitors, who will take the case on a no win no fee basis. This avoids the ‘middle man’ and any hidden charges. Solicitors have always been regulated by the Law Society providing the necessary protection to the public.

”As a guide to choosing a personal injury specialist, ask if they have been accredited by the Association of Personal Injury Lawyers (APIL). This means they will have at least five years’ experience of personal injury claims and will be committed to the APIL consumer charter, which offers further protection and minimum standards of service.”