In reality, motorists are unaware they are contacting an accident management company (AMC) or a claims management company (CMC) who go to great lengths to hide their true identity. The ensuing contractual relationship exposes the motorist to the risk of serious financial harm, all so the AMC or CMC can manage – and profit – from their claim.
AVIVA’s subject matter experts in this area, Benjamin Challinor and Emma Holland, closely monitor the activities and changes in operating procedures of those involved. As a result, the pair recently identified an AMC that was racketeering by exploiting ‘at fault’ motorists.
Initial focus was on three customers who, after first engaging with an intermediary behind a spoofed online advert, accepted recovery and storage offered by the AMC. Within a couple of days, the fees charged for those services ranged between £2,000 and £3,300. Furthermore, the AMC refused to release the vehicles under their control until all fees were paid in full.
Determined to take immediate and decisive action, AVIVA reached out to Claire Barnes, the DWF lead on paid online advert spoofing, to agree and implement an effective recovery and disruption strategy.
Having taken instruction, negotiations with the AMC proved unsuccessful in two of the three cases. They were therefore put on notice that an application for an injunction to order the release of the vehicles was being made. In the days that followed, AVIVA was notified that a fourth ‘at fault’ customer had been misled by a paid online ad from the AMC. However, this time the AMC dramatically reduced the bill for recovery and storage, which came to just over £900, including VAT.
On the eve of the injunction hearing, DWF received confirmation from the AMC’s solicitor that the vehicles being held would be released without charge. It was also agreed that ALL of AVIVA’s legal costs would be paid in full.
Fantastic collaboration and swift action have resulted in the evolution of this sharp practice being thwarted before it could become a significant threat to AVIVA and its customers.
Spoofed online ads are unethical and designed to entrap motorists when they are potentially at their most vulnerable. The activities of this AMC layered additional stress and worry on top of an already unpleasant experience.
Fantastic feedback has been received from the customers affected and this case exemplifies a commitment to pushing the envelope in protecting their interests.
If you would like any assistance or further information, please get in touch with Claire Barnes, DWF.
