As a result of the Compensation Act 2006, the personal injury claims management industry became a regulated industry. The industry regulator is now the Financial Conduct Authority (FCA). The biggest Compensation Act 2006 requirement of companies operating within the personal injury compensation sector, is that all businesses offering personal injury services are now required to hold annual regulatory approval to operate. All businesses have to apply annually and can only operate with the regulator’s approval and an authorised status number – which should be clearly displayed on all company literature and website.
Direct2Compensation can confirm that we are authorised and regulated by the Financial Conduct Authority, Our authorisation number is 830395. Details can be found on the Financial Conduct Authority financial services register, so you can be certain that you can trust our no win no fee claims process, the solicitors we work with and the way in which Direct2Compensation claims process works. This is just one of the reasons why you should use regulated companies to help you with your claim. Personal injury claims companies must follow strict rules governing the way they can operate, advertise and behave. Certain operations are outlawed – such as cold-calling (door knocking, unsolicited telephone calls, being approached in the street etc) and offering up front cash incentives to entice someone to claim. This all came about after a government crackdown on the personal injury claims sector after very successful lobbying by the insurance industry.
Like many others, I myself had text messages and telephone calls asking about my accident – I even had a text offering me a specific amount of money. I hadn’t requested any contact, registered anywhere for a claim so the action of that company was not in compliance with the requirements of the Compensation Act 2006 or the more recent Jackson Reforms (LASPO Act 2012). It begs the question why they had my details, but more importantly, what can you do to report such behaviour and support the honest and ethical compensation claims businesses such as Direct2Compensation?
Reporting businesses and activities to the Regulator
If you have concerns that the company you have chosen to manage your claim are not in ownership of regulatory approval, or you are targeted by a cold caller or pressurised in the street to pursue a claim you can report the company to the Financial Conduct Authority.
You can search for regulated businesses on their website also. I should add that it can be possible for a recently approved business to not yet show on the claims regulatory website. However, if the details of the business are not listed you should definitely contact the regulator and speak to someone.
It benefits nobody involved in personal injury compensation claims, whether they are the claimant or a claims management company, for businesses to be operating outside of the regulatory framework. Companies offering personal injury claims services in an illegal and non-compliant manner may well act fraudulently or even incite people to pursue scam claims. This hurts us all as it risks the security of a claimants personal details and claim and really damages the claims industry and helps fuel myths about personal injury claims and the compensation culture story.
Of course, you can also contact us to discuss any concerns you may have about a company in contact with you, or the way you have been approached or enticed to claim personal injury compensation. Direct2Compensation know what activities are approved, what companies can offer legally and what they cannot. We have referred suspected companies to the Financial Conduct Authority before and will do so again if suspicious activities are reported to us. We handle all such enquiries and contact discreetly and will not share your details with any party without your approval to do so.