Stop promising claims come at no cost, advertising watchdog tells firms

The clampdown on misleading messages from claims companies to potential clients continued today, with the advertising watchdog announcing action against three businesses for implying claims would come at no cost.

Meanwhile, the Financial Conduct Authority and Solicitors Regulation Authority have collaborated to stop CMCs and law firms from exaggerating the amount that clients can secure from making motor finance claims.

Today’s Advertising Standards Authority action related to three claims management companies: CC Response NW Ltd, Exclusive Law Ltd and iRevolution Claims Ltd.

CC Response NW, trading as Motor Claims Line, ran paid-for Google search results urging people not to contact their insurer straight after an accident and promising they would get ‘back on the road with minimal hassle’ and without affecting their insurance. It claimed that consumers would save £348 by instructing the company and that all costs could be recovered ‘so it doesn’t cost you a penny’.

Exclusive Law, through its website Accident Claim Helpline, told consumers there were no upfront payments and that all costs would be recovered through the at-fault party’s insurer (TPI). The website added: ‘Personal Injury Claims are "NO WIN NO FEE" and the success fee is deducted at the end of the successful claim directly from the damages paid VIA the TPI it is not paid by our clients.’

The ASA said both companies’ messaging was misleading in relation to the nature of the service and irresponsibly discouraged consumers from approaching their insurer.

Exclusive Law said its call process directed people to call their insurer or read policy documents, and call handlers were directed to ensure any misunderstanding was corrected. Accident Claim Helpline said it believed its advertisements met Google’s compliance requirements but had deleted the claim 'Going to your car insurance provider after an accident is crazy!!!!' from the website.

The ASA said the company had to make clear to consumers the nature of its service, including in relation to non-fault accidents, and could not imply that there was no cost to the consumer if that was not the case or irresponsibly discourage consumers from approaching their motor insurance provider.

CC Response NW admitted its claim of a ‘100% free service’ had been generated by AI and had since been removed. It said that callers were told the company dealt only with no-fault claims and clients were informed about potential costs during the initial consultation. The ASA banned any future advertising that implied there was no cost to the consumer if that was not the case and banned any misleading claims in relation to potential savings.

iRevolution Claims and its website for UK Motor Claims advised consumers to report an accident directly to the company and that it would fully investigate and attempt to confirm liability. The ASA challenged whether this was misleading in relation to the nature of the service provided, but the company said there was limited space on the website and that clients were fully informed during the first onboarding call. The ASA found the company’s implication that no costs were payable by consumers, or that it was always financially beneficial to use the service over an insurer, was likely to mislead.