More than 50% of Britons have been cold-called by a “no win, no fee” claims firm, a survey has shown.
ConsumerIntelligence.com completed the poll, which revealed that while 51% of people had been contacted by these firms only 6% used the services.
Just over a quarter (28%) of those said they were either disappointed with the amount of compensation received or lost their case.
Text messaging and cold-calling were the most popular contact methods used by the firms, according to the survey.
The Government recently revealed plans to reform the sector, with suggestions that personal injury lawyers could take their fees out of the damages awarded to their clients, as opposed to levying fees on the other party.
With the increase in no win, no fee firms in recent years, this has been credited as one of the main factors causing increased insurance premiums, which soared by 40% during the past 12 months.
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, accounting for 48% of cases, while 14% involved the mis-selling of a financial product and 10% concerned accidents at work.
Many people said they disliked the hard-sell approach that some of the firms adopted, with 78% of people saying they were worried about the UK’s growing compensation culture and 79% were concerned about the impact personal injury claims were having on motor insurance premiums.
Source: Legal & Medical
