The Charity Commission is to review the charitable status of an organisation linked to a partner of London law firm Reid Minty and set up to assist victims of non-fault road traffic accidents in making a claim.
The commission said there was 'sufficient doubt' over the operation of the Motor Accident Relief Society (MARS) for it to 'reconsider its charitable status'. The matter has been referred to the commission's registration division for review.
MARS - which has not yet succeeded in attracting any members of the public - is intended to provide accident victims with a £250 donation to assist them in bringing a legal claim.
The charity has two registered trustees, one of whom is Reid Minty partner Christine Minty. Both Ms Minty and MARS itself declined to comment while the commission's review was taking place. However, a spokesman for the Accident Relief Campaign, a campaigning arm of MARS which protests against referral fees, described the review as 'strange'.
The spokesman said: 'The MARS application criteria were drafted in close co-operation with the Charity Commission... there is no similarity between the MARS charity and commercial claims farmers.
'MARS is in fact quite the opposite in every way to the insurance companies, motoring organisations and brokers who are presently selling non-fault personal injury claims to panel solicitors for up to £600 or more per case... MARS' sole purpose is to provide early financial assistance to victims.'
The spokesman added that rather than being an exclusive arrangement with Reid Minty, MARS had received 'many, many applications from solicitors' firms from all across the country who wish to join the charity's panel'. However, he added that the charity has not yet received any applications from members of the public due to lack of awareness.
A Charity Commission spokeswoman said a case has been opened and that the review would be progressed once it had received further information from MARS.
Rachel Rothwell
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