Clampdown on Claims Marketing

Published: 07/02/2011

Firms which offer cash incentives to attract people to make compensation claims through them – including for personal injuries - will be stopped under new proposals.

At present, some companies promise people a financial reward – for example “We’ll pay you £200 immediately after our solicitors approve our claim”. This is designed to attract people who may be led to believe they can receive a large payout for minor incidents such as slips, trips and falls.

The proposed rule change would stop the offering of cash payments or similar benefits to attract claimants and forms part of the Ministry of Justice’s response to Lord Young of Graffham’s report on compensation culture, Common Sense, Common Safety.

The rule change is a targeted restriction and is unlikely to have a detrimental effect on the majority of legitimate claims management businesses.

Kevin Rousell, Head of Regulation at the Ministry of Justice said:

“We have accepted Lord Young’s report and plan to take the necessary steps to ensure that the concerns raised about the marketing practices of some claims management businesses are tackled at the earliest opportunity.

“This consultation is an important step towards tackling irresponsible marketing.”

Content correct at time of publication