Compensation Bill: access to legal advice vital to prevent consumers being 'fleeced'

The frontrunner for overseeing the work of claims management companies has this week urged solicitors to take a role in shaping the future of the sector.


The Claims Standards Council (CSC) called for solicitors' co-operation after the Lord Chancellor, Lord Falconer, launched the Compensation Bill last week.


Lord Falconer said there was a 'fear of being sued' and put this mainly down to 'cowboy claims companies' that pressure clients into bringing cases. He said the courts should also take into account whether claims might inhibit activities with 'wider social value', such as school trips.


He suggested the door was open to bodies that might be interested in regulating the sector - including the Law Society - to apply for the role, but a spokesman for the Department for Constitutional Affairs said the 'strongest candidate' is the CSC, which it is currently assessing.


The Law Society said it was not interested in regulating claims farmers. However, a CSC spokesman said it would be consulting with Chancery Lane and solicitors over how the situation should progress.


The CSC spokesman said: 'Solicitors are crucial to the process - we see them as advisers first and litigators second. They are key to access to justice and making sure the consumer doesn't get fleeced. The protection of the consumer means absolute access to legal advice.'


The spokesman said several claims companies had already resigned from the council after Lord Falconer made his announcement. 'Some members have gone ballistic and left,' he told the Gazette, adding that the CSC anticipated having a slimmed-down membership of around 20 companies dealing with larger panels of law firms.


Law Society President Kevin Martin said: 'Rogue claims farmers have been allowed to exploit unsuspecting consumers for too long, and so this Bill is welcome.'


However, he added that the Society agreed with the Better Regulation Task Force that there is no compensation culture in the UK.


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