The congratulatory report on claims management regulation has once again steered attention away from the rapidly increasing number of claims management companies to issues surrounding regulation of solicitors’ responsibilities (see [2009] Gazette, 30 July, 3).
Many years ago, APIL questioned the government about the necessity of middlemen in personal injury claims. Personal injury lawyers study and enter the profession committed to helping those injured through someone else’s negligence, but the introduction of claims management companies opened the floodgates to commercial opportunists who continue to create endless new deals and arrangements of which many claimants are unaware, and APIL members are required to investigate.
Claimant personal injury lawyers need the SRA to work more effectively and openly with the profession, by proactively reporting its findings and advising on best practice, to bring about change. Kevin Rousell, head of claims management regulation at the MoJ, says: ‘Solicitors should be intelligent (purchasers) of claims…' I call on the regulator to offer insight and guidance to APIL members about the deals and arrangements being used by the 2,232 claims management companies currently in operation.
There are serious concerns among practitioners – regardless of whether they work with CMCs or not – about the ongoing rise in referral fees, and the lack of openness and potential conflicts generated by arrangements offered by CMCs with the sole aim of increasing profit margins.
APIL is committed to working with whoever has the power to bring about change in this area. We are committed to protecting injured people and they must be the first priority. We are ready and waiting to get on with it.
Denise Kitchener, chief executive, Association of Personal Injury Lawyers
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