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Lawyers concerned that recession could cause bogus claims to soar

Some no win no fee lawyers have said that they are concerned the UK recession might lead to an increase in the numbers of trivial and fraudulent accident compensation claims.

One lawyer, from a prominent personal injury firm based in Liverpool, comments, "We have already seen an increase in the number of claims we'd expect at this time of year, and an increase in the number of claims we reject at the first stage of scrutiny.

"These are claims where there was a genuine accident so no blame can be apportioned, or where we have suspicions about the claim.

"In many respects we are entering uncharted waters. At the time of the last major economic downturn in 1990 there was no no win no fee' funding for personal injury claims this did not come into effect until 1994.

"The introduction of no win no fee' led to an explosion of claims companies seeking to make money out of the claims process, and there are many unscrupulous companies out there.

"They often charge fees to even assess a claim or help themselves to a percentage of the claimant's damages relying on small print clauses in agreements with claimants."

"Nobody should be fearful of pursuing a legitimate claim. The law is there to ensure that if you are injured as a result of someone else's negligence you can recover proper compensation for your injuries and financial losses.

"If you are not sure whether you have a claim, you should seek advice.

The no win no fee specialist also warned that any good personal injury firm will be experienced enough to distinguish between genuine claims and bogus ones, saying, "Anybody who is considering a fraudulent claim as a way of making money should remember that reputable firms have systems in place designed to detect and weed out these claims."


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