Catching a chill from the cold calls

More than half of Britons have been cold-called by a ‘no win, no fee’ claims firm, but many of those who used the service said they were disappointed with the way their case was handled.
By The Newsroom
Published 23rd Apr 2011, 07:00 BST

Around 51 per cent said they had been contacted by one of the firms during the past three years, often by text message or through a cold call, according to independent research firm ConsumerIntelligence.com.

But among the 6 per cent of people who had used the services of one of the firms, 28 per cent said they either lost their case or were disappointed with the amount of compensation they received.

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The Government recently announced plans to reform the sector, including calling for personal injury lawyers to take their fees out of the damages awarded to their clients, rather than levying additional fees on the other party.

The increase in no win, no fee firms seen in recent years has been credited as one of the key factors leading to sharp increases in insurance premiums, which soared by 40 per cent during the past year.

The Association of British Insurers claims that for every £1 that is paid out in compensation, a further 87p is paid out in legal fees.

The research found that motor accidents were the biggest source of no win, no fee claims.

Related topics:Government