A growing number of claims management companies are putting solicitors at risk of breaching conduct rules by hiring call centres to cold call potential claimants, the Gazette has learned.
The Ministry of Justice has identified a ‘shift’ towards the use of call centres in India and the UK by claims farmers. Solicitors who accept claims obtained by cold calling break Solicitors Regulation Authority publicity rules.
Claims management companies’ increasing use of external call centres to farm claims will make it harder for solicitors to check the origin of a claim when undertaking due diligence.
Kevin Rousell, head of claims management regulation at the MoJ, urged solicitors to take care and undertake proper due diligence ‘so that they are sure where their claims are coming from’.
‘Some will be lax about this, but you need to look all the way down the chain to where the claim emanates from,’ he said.
An SRA spokeswoman said a solicitor is responsible for ensuring that they do not become involved in ‘dubious financial arrangements’ that might breach conduct rules. ‘We would expect the solicitor to show evidence of having made suitable enquiries about an introducer’s marketing methods,’ she said.
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