The group representing RTA claimant solicitors has said it is ‘disappointed’ that inducements for claims will not be banned.
Last week the Solicitors Regulation Authority stated there was no reason to outlaw cash or gift enticements to potential claimants.
The Motor Accident Solicitors Society today entered the debate and called for a rethink of the decision. In a statement, MASS said any form of enticement had the potential to encourage unmeritorious and unnecessary motor insurance claims.
Chair Craig Budsworth said: ‘It should be increasingly obvious that offering cash upfront or a free gift like an iPad to attract claimants will not help in the battle against fraud.
‘If we are going to clean the system of fraud and reduce motor insurance premiums, this practice must end. Combating the "have-a-go: culture must be a top priority and banning enticements to claim will help reassure consumers that claims are not to be encouraged.'
The Ministry of Justice, which regulates claims management companies, has already implemented a ban on them offering inducements to potential claimants.
Budsworth said all regulators should have a consistent and uniform approach to enticements across the sector, and he described the MoJ’s decision as a ‘positive step forward’.
‘If we are serious about this issue, the ban should be extended across the entire sector covering both solicitors and insurers – everyone must be held to the same high standard. This dubious practice is partly responsible for bringing our industry into disrepute and must cease.'
Last week the SRA said there was no evidence to suggest clients are harmed by law firms offering advance payments for their cases.