UK Compensation Culture (should you promote their services?)

[internetheaven]

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In response to the BBC news segment tonight dedicated to the current "compensation culture" in the UK I thought I should make a comment as one of the firms that works in that particular industry. I completely agree with the news researchers figures (indeed we use the exact same figures in articles on our own site) and I also agree that solicitors are largely to blame but they did fail to mention that most solicitors are "fed" these frivolous claims by unscrupulous claims firms.
Right now there are six personal injury claims firms with affiliate programs on the various networks. I felt a discussion on whether affiliates should promote such companies would most likely help clear up some misconceptions about the industry (and also let some of you vent a little frustration!)

I'm obviously a part of the industry (claims4free.co.uk on Affiliate Window) but I hope my words will be taken as a general statement on the current situation rather than a promotional stance for my own firm. As stated on the news program, firms need to take responsibility for the claims their pursue - yes, everyone who deserves compensation should be given a chance but (as in the example of the woman suing because a marble floor was "too hard" for her to walk on) some claims obviously have no grounds.

I for one favour legislation as opposed to allowing the solicitors to try and reel themselves in. Simple laws banning "cold-calling" for leads at homes and stopping people in the street would not only curb some of the problems but also send a message to claims firms that they need to change their tactics.

As for advertising such services on the web I believe SEM and SEO practices to be perfectly ethical as they will only be gaining people already looking to make a claim and therefore do not encourage those who may not have felt they needed to claim. Banner advertising on the other hand can be seen to encourage people to make claims whereas they not have done so if they had not seen the advertisement. I would like to offer our own position that the large part of referrals we receive through our affiliate program are people who are seeking to switch firms as they are unhappy with the treatment they are receiving from their current firm. This of course does not contribute to the compensation problem the country is facing. As for the other leads, most of the ones we have received are genuine cases for which there would not have been any doubt that the client would have made a claim themselves without coersion.

From the figures we work from in both our research and our own company, the rising cost of compensation is not largely due to the rise in the number of claims but are mostly affected by the sharp rise in legal costs claimed for running these cases. These are brought on by inflated "legal insurance" policies and solicitors "padding" out their rates to cover for their referral fee payments, some of which can be in the region of £400-£600 (and you thought their £40 commission to you was generous!). If solicitors are paying hundreds of pounds to claims referral companies for each case, and only 1 in 10 of those actually win in court, where do you think that money is reclaimed from?

Example: Take the example of Birmingham Council where Councillor John Lines estimated that £7.5million had been paid out in housing compensation with £4.5million of that going to meet legal fees. Of the remainder, £2million has gone on repairs of the defects involved and only £1million (a mere 13% of the compensation total) being given as actual compensation to tenants. He commented that solicitors have been queuing up to sue the council on behalf of tenants saying: "Millions of pounds of rent money which should have been used to provide central heating or double glazing has been siphoned off into the pockets of solicitors without any questions being asked or the claims being checked out."

The issue isn't whether to promote them or not, in my opinion, but more WHICH firm to promote. By NOT promoting a firm you will not curb the compensation culture - that is already now inbred into the country - and eventually they will find a firm to take them on. I put the suggestion to you that if affiliates promote an ethical, low-cost firm then they will actually help REDUCE the cost of compensation to the UK (currently at £10billion a year) as fraudulent claimers will be told (kindly) that they do not have a claim and will then give up. Also, by promoting a firm that charges less you will ensure that those who actually DO have a claim will not be sold a high-priced insurance policy and that solicitors will not have to "retrieve" their referral fees through their charges.

I hope that all made sense. I look forward to comments and questions.

[renegade]

I had my say in this thread:

http://www.a4uforum.co.uk/showthread...threadid=22887

[mrb1970]

Problem is - that's the way the world is going..........


......people are often greedy!

[Flightmapping]

I've also added my comment on the other thread - why did you need to start a new one?

[internetheaven]

I've also added my comment on the other thread - why did you need to start a new one?

I'm trying to start a general discussion on this industry in the affiliate lounge. The thread you just commented in is in the Affiliate Window section where I was talking particularly to AW affiliates as I have a program there.

I thought that would be an obvious distinction, I'm sorry if this thread then seems boring as there is a duplication in another section of the forum that you also are aware of. I thought a general discussion on the industry with ALL affiliates could be done here, whereas in the AW forum it was a specific discussion with AW affiliates about my program.

Is that not how a forum works? I've never run one so I don't know.

[Flightmapping]

IH,

Fair comment, this thread is far more relevant to the lounge than just AW. Can the previous thread be merged into this one?

If not, it looks like the responses are continuing on the original thread, so perhaps you'd like to respond to these new posts there?