Legal adviser HF and Hastings Direct have secured a ruling at Newcastle County Court that shows claimant solicitors misled the court by inflating a claim worth no more than £10,000 to more than £25,000.
HF said there was no legitimate reason for the value of the claim which was classified as a ‘help with fees’ case, which was initially allocated as a multi-track case. HF’s intervention saw the claim reallocated as a fast-track claim.
Morgan Davies, partner – counter fraud at HF, said: “This is an important win for our industry. We have seen a sharp rise in claimant solicitors looking for ways to make additional income, following the introduction of the OIC, the official injury claim service.
“When cases are processed as small claims, claimant solicitors are not able to recover their costs and are therefore seeking other means to generate lost revenue... This is driving up the cost of claims for insurers, which in turn drives up the cost of premiums for drivers.”
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