News

Some marketing businesses have contacted firms to offer services that lead to personal injury clients contacting the firm. Some of these businesses have claimed they do not need to be authorised under the Compensation Act because they are a marketing business, not a claims management one. This is not correct. The Act states that the following activities are regulated, and so require authorisation:

• advertising for, or otherwise seeking out (for example, by canvassing or direct marketing), persons who may have a cause of action
• referring details of a claim or claimant, or a cause of action or potential claimant, to another person, including a person having the right to conduct litigation where this is undertaken for or in expectation of a fee, gain or reward 

To check whether businesses are authorised, go to the government website at www.claimsregulation.gov.uk.
If you're still in doubt, call 0845 450 6858 and ask for the duty officer, or check the legislation.
You can also read a Law Society practice statement from February 2007.