| the Recession Lead to Credit Crunch Bogus Claims? | | | | Liverpool have already seen an increase in the |
| In a time where everyone is counting every penny | | | | number of claims at this time of year and an increase |
| and the recession (despite headlines claiming that | | | | in the number of claims that have been rejected at |
| it’s all over bar the shouting) continues to | | | | the first stage of scrutiny. They’re basically |
| bite, some claims experts are worried that people | | | | charting how people are ‘trying their |
| facing spiralling debts and mounting bills may look for | | | | luck’ at putting in a claim when the incident |
| an easy way to make some quick money. Many are | | | | was a genuine accident and no blame can be |
| warning that the recession could result in a large | | | | apportioned or where they have suspicions about the |
| number of ‘bogus or unmeritorious’ | | | | validity of the claim. |
| personal injury claims being taken on by unscrupulous | | | | During the last economic downturn in 1990, there |
| or unsuspecting claims management companies. | | | | was no ‘no win no fee’ funding for |
| Although this warning tends to get trotted out every | | | | personal injury claims. We had not yet developed the |
| time the economy takes a nose-dive, is there any | | | | ‘claims culture’ that the UK has been |
| truth in the scare mongering this time around? | | | | accused of adopting, since the no win no fee scheme |
| Solicitors in some areas hardest hit by a massive | | | | was implemented after the 1990 recession. |
| downturn in manufacturing and social deprivation think | | | | Heavy-duty advertising didn’t begin until a |
| that yes, this time the threat is real. Some solicitors | | | | couple of years later, which is when many people |
| are already seeing an increase in the number of | | | | started looking more seriously at the situation. Today, |
| claims compared to the numbers that they would | | | | the climate is very different. The general public is far |
| normally expect, and they also suspect that this | | | | more aware of their legal right to compensation in |
| trend will continue as desperate people look for ways | | | | case of an accident that wasn’t their fault, |
| to find more money. Are the claimants to blame for | | | | but this in turn has created its own monster - the |
| this feeling of unease amongst some of the more | | | | fraudulent claim. |
| reputable firms or are they also looking | | | | Nobody should be fearful of pursuing a legitimate |
| ‘in-house’? | | | | claim. The law is there to protect those who have |
| The concern is that sometimes bogus claims get | | | | been genuinely affected by an avoidable and |
| further in the system than they should do. Solicitors | | | | preventable situation (translation in ad-speak: an |
| believe their clients and it is only when they evidence | | | | accident that wasn’t their fault) or because |
| does not stack up some time later that they begin | | | | of someone else’s negligence. What is of |
| to question their client's integrity. Once they realise | | | | concern is that some less scrupulous people may see |
| the claim is not genuine or is being exaggerated most | | | | the current economic climate and people’s |
| solicitors will drop it immediately. | | | | desperation to access finance (now that the credit |
| These bogus claims are likely to fall into three | | | | card lifeline has been cut off) as an opportunity to |
| categories; the genuine claim, the wilfully fraudulent | | | | milk the system. It is a time for solicitors to be extra |
| claim and the unfortunate accident where no actual | | | | vigilant when assessing the merits of a new claim. |
| cause for a claim exists. Partners at a practice in | | | | |