Company Slapped With $1 Million Fine For 94 Offences Of Claim Farming
Ramsden Lawyers received positive news regarding the successful prosecution of a company found guilty of engaging in the harmful practice of claim farming. In a recent article, we shed light on the nature of claim farming and its detrimental effects on individuals who have experienced personal injuries.
Insight into Claim Farming: Understanding the Practice
Claim Farming refers to the illicit act of selling the personal information of individuals who have suffered injuries to unethical law firms. These companies or individuals exchange crucial details about accidents for large sums of money without the injured person’s consent. Initially banned in Queensland for motor vehicle accident claims, claim farming has been deemed highly illegal for obvious reasons. In October last year, the ban was extended to encompass Queensland work injury claims, public liability claims, and historical childhood sexual abuse claims.
The allure of making substantial profits by selling the personal contact information of accident victims has led to persistent harassment and deceitful communications with the injured parties. Claim Farmers employ various tactics to deceive their victims. Some Queensland residents have endured spam calls from unfamiliar individuals or companies claiming to address their “recent accident” and attempting to persuade them to file a claim. Other business models involve crash repair organisations selling information to law firms. Specific individuals have been misled by claim farmers, believing that the calls they received were from their insurance company arranging rehabilitation funding for their injuries. Consequently, the Queensland Government has taken a firm stance against such behaviour, aiming to safeguard Queenslanders from harassment and privacy breaches. There are now severe consequences for both organisations that sell personal information and law firms that offer payment for referrals.
Magistrate Saggers levied a $1 million fine against Accident Management Solutions Pty Ltd on 7 February 2023 for committing 94 claim farming offences, marking the first prosecution of its kind. The imposed fines by Magistrate Saggers are intended to discourage other organisations from participating in such unethical practices and uphold fairness and transparency within the personal injury industry.
These prosecutions serve as a powerful message to the industry, emphasising that unlawful and unethical actions will not be tolerated and will face appropriate consequences. The aim is to make the financial burden of such activities outweigh their potential gains, thus dissuading organisations from partaking in claim farming.
Dealing with Unsolicited Claim Farming Calls – What to Do?
Suppose you receive an unsolicited call regarding a personal injury accident, wherein you are urged to file a personal injury claim. In that case, it is advised by the Motor Accident Insurance Commission to end the call and report the incident promptly. Reporting the claim farming attempt can be done conveniently online at the following link: https://maic.qld.gov.au/scheme-knowledge-centre/report/.
Ramsden Lawyers – HOW WE CAN ASSIST YOU
Safeguarding your personal information and seeking legal advice from a trusted professional should always be your priority. Claim farmers are motivated solely by their financial gain and do not prioritise their best interests. Please do not allow them to exploit your suffering for their benefit.
If you have experienced an injury and require assistance, contact us today for a no-obligation consultation. We will discuss your eligibility for compensation and provide guidance tailored to your situation.