Look Out for Scams in the Downturn
Sunday, February 1, 2009 8:47
Crunch cash-in Dishonest claims companies could trick desperate customer into seeking no-hope payouts. It is another consequence of the recession and it could get worse.
These days, the cash-strapped customers are being warned not to become easy prey for ruthless claims companies trying to profit from the recession. Taking advantage of the no-win, no-fee practice, dishonest companies could promise big payouts for phoney personal injury claims. In some cases, customers could fork out for initial charges and lose their money when the case is dismissed.
Law firm Paul Rooney Partnership has accepted only 8% of submitted personal injury claims compared with 52% at the same time last year, and warned worse was to come.
Individuals looking to make money with their own fraudulent claims have also been issued a stark warning. If someone has lost their job it is easier to be pressurised into making a claim, even if there’s nothing in it.
In the year of 2008, 71 claims businesses were suspended by the Ministry of Justice, and the claims management regulator insists it can stamp out bad practice.
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