• Moneycheats

Living in a Compensation Culture

The phrase ‘no-win, no-fee’ or ‘where there is blame, there is a claim’ are familiar to most of us nowadays and are a reflection of the compensation culture we live in. However while the vast majority of claims are genuine, unfortunately it seems there still remains profit to be made in the submission of a fraudulent or exaggerated claim. Personal injury claims are a significant source of income for many claim management companies and in 2011 there were 3,213 CMC’s specialising primarily in personal injury claims. However the financial claims sector has also grown significantly in the last 4 years thus generating more than double the turnover of the personal injury sector. Indeed, between 2007 and 2017 CMC’s overall earned almost £6.3 billion, of which £3.4bn was attributed to those processing financial products and services. Holiday sickness claims have also been the source of much focus in recent months with volumes increasing by 500% since 2013, with a large number being fraudulent. A number of high profile cases have seen claimants facing jail sentences as the travel industry fights back against claims management touts who are actively soliciting fraudulent and exaggerated claims from members of the public. Similarly, the NHS has responded to recent claims increases by banning lawyers and CMC’s from advertising or working in hospitals. No one wishes to prevent the honest person from pursuing a genuine claim however it should not become a profit-making transaction for anyone. The increase in bogus and inflated claims now needs to be stopped and measures put in place to strongly deter their submission while any that do slip through the net should be easily identifiable to expert staff.


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