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‘Unethical’ claim farming by law firms banned in Qld
New laws introduced in Queensland will prevent firms from buying private information from cold-call scammers who “bully” car crash victims into compensation claims.
Naomi Neilson
The “claim farming” ban will put an end to the “unethical” practice of law firms claiming people’s private information. Under the new laws, firms will now have to declare there was no claim farming by its supervising principal and associates when making a claim.
“QLS called for these new laws and consulted heavily in framing the obligations. It is very pleasing to see them approved by parliament,” Mr Potts said.
“QLS has consistently raised concern about the practice of claims farming and has led the charge to address it. We have maintained that we do not endorse claims farming for a long time. We have said that claims farming of any kind – be it direct or through a consultancy model – is unethical for solicitors.”
Claim farming often sees car crash victims and their family targeted by unsolicited calls from overseas call centres, email or social media. They often allude to being part of a government agency, using this to leverage compulsory third-party insurance schemes.
The Queensland Parliament passed the ban this week, creating two offences that ban the practice and expanding the Motor Accident Insurance Commission.
“It is pleasing to see the Queensland Parliament taking action early to ensure that our Queensland injury compensation schemes remain fair,” Mr Potts said.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
