Government Finally Takes a Stand! [30th Aug 2012]
Consumers who feel they have been unfairly treated by claims management companies will be able to take their case to the Legal Ombudsman from next year, after the Ministry of Justice announced changes to the rules surrounding compensation claims. The new rules mean that it will be much easier for consumers to claim compensation of up to £30,000 if they feel the claims company has mishandled their case. The ombudsman will also be able to take the case further as it has powers of redress, something the MoJ does not. Adam Sampson, the chief Legal Ombudsman has commented that it is great news for the public and should help to improve standards across the claims management sector. However it has been suggested that more than 1,000 claims firms could leave the industry due to the new rules which will include the payment of a levy of £400 per case. The Ombudsman say they will publish details of claims made and will name those firms who are repeat offenders. It is thought that those PPI claims firms which are pushing forward claims without proof legitimate claims exist could be the first in the firing line. Related Stories: Over half of PPI claims firms could leave industry - www.moneymarketing.co.uk Legal ombudsman to get claims firm redress - www.moneymarketing.co.uk Claims management firms face tougher rules - www.bbc.co.uk HSBC could be facing further compensation payments after it has been suggested that the bank helped US citizens to avoid paying tax in Switzerland. Other banks are also being investigated by US regulators including Credit Suisse and Julius Baer. HSBC has already had to put aside £1.3bn to pay compensation for money laundering and mis-selling and could be facing further investigations of tax avoidance in the UK. Switzerland is used as a tax haven by the rich because the strict laws in the country do not allow the names of customers to be released. It also has a very generous tax scheme. It is thought that those HSBC employees who were involved in helping their clients to put their money in Swiss bank accounts will be targeted rather than the investors themselves. Related Stories: HSBC could face another compensation bill for helping US citizens avoid tax in Switzerland - www.thisismoney.co.uk Northamptonshire County Council has paid out more than £350,000 in compensation to employees over the last five years according to a report in the Daily Mail. The payments range from one employee who received £200 for a large splinter and £500 for a worker who had a blind fall on them, to more than £11,000 for a worker who was thrown to the floor by a shutter door and £32,000 to a worker who slipped on some spilled food. The largest claim was made to a fireman who injured his lower back during a fire drill - he received more than £90,000. Jonathan Isaby from the Taxpayers Alliance has commented that the bills for compensation claims to the taxpayer has become unacceptably high. He points out that some claims may be legitimate and due to negligence, others could have been avoided if a little common sense was used. He says that councils needs to fight questionable claims. One such questionable claim was a woman who said she received a back injury because her uniform was too tight. Related Stories: Council worker forced to wear a poorly fitting uniform given £5,000 - www.dailymail.co.uk A surprising fact has emerged from figures released by Britannia Rescue regarding potholes - Scottish Councils make fewer payments in compensation to drivers affected by potholes than councils in England. Potholes are generally caused by poor weather freezing water in the road which expands leaving holes. With worse weather in Scotland, it would be expected that higher compensation payments would be made, however the figures do not show this. Aberdeen council paid out just £37,000 while Surrey council paid £630,000. Aberdeen paid out more than any of the 16 councils in Scotland which responded to the survey. In total the compensation bill in Scotland for pothole damage was £1.7 million between 2006 and 2011. Across all of the UK the total was £4.8 million. Related Stories: Scottish councils pay less pothole compensation than England - www.bbc.co.uk  |
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