Claims management companies have become a particularly popular way of encouraging a large number of individuals to bring personal injury claims before they are referred to the solicitors, which is seen as a way of bringing their cases in a cost-effective manner. Although these claims management companies are often seen as an efficient way of sifting through potential claims in order to ensure that only the most likely cases receive additional legal attention, there are also concerns that the quality of advice being given by these claims management companies falls woefully short of the level needed.
Concerns have been raised both by the Law Society and several MPs that claims management companies are operating in a manner that does not necessarily offer the level of advice needed to allow the industry to deal with spurious claims, appropriately, and without wasting the time of the individuals involved.
Whilst these issues are now under review, both in terms of the advertising methods used by these companies and how individuals are then referred to a solicitor, the main focus has been on ensuring that clients are not put in a position where they are financially impacted upon. Also, there are now concerns that greater attention needs to be given to the quality of advice to ensure that hopes are not raised unduly.