NSW Government to crack down on practice of ‘claim | Australian Markets

The NSW Government will crack down on the predatory practice of ‘claim farming’ the place weak people are pressured to lodge compensation claims.

Claim farmers typically use unethical and high-pressure techniques to goal these corresponding to little one abuse victim-survivors.

The NSW Government is introducing the Claim Farming Practices Prohibition Bill 2025, to:

• prohibit a individual from contacting one other individual to solicit them to make a related declare;
• prohibit a individual from shopping for or promoting a related declare referral; and
• stop attorneys who’re convicted of these offences from charging legal prices in relation to the declare, and to require them to refund any prices already obtained.

Claim farmers could acquire somebody’s personal info with out consent to make unsolicited contact and use high-pressure techniques corresponding to harassment and intimidation.

The practices utilized by declare farmers may cause misery to victim-survivors who’re pressured to lodge civil compensation claims.

Claim farmers charge referral charges to ‘sell’ the declare to a legal practice or one other declare farming organisation.

They typically make guarantees about legal entitlements that will not be appropriate or within the claimant’s best pursuits.

The invoice will prohibit declare farming for personal damage claims below the Civil Liability Act 2002 and arising from intentional torts (intentional acts that lead to damage or death).

The Civil Liability Act 2002 applies to many varieties of claims, together with critical damage, medical negligence, and public and product legal responsibility.

Intentional torts cowl acts corresponding to little one abuse, assault and deprivation of liberty.

Existing offences corresponding to fraud will nonetheless apply as well as to the declare farming invoice. Dishonestly acquiring financial benefit by deception at the moment carries a most penalty of 10 years’ imprisonment.

Prohibiting declare farming is not going to stop abuse victims from bringing a declare for compensation, which might be completed by contacting a lawyer immediately.

Attorney General Michael Daley mentioned:

“It’s abhorrent that individuals and organisations are seeking to profit off vulnerable people such as victim-survivors of child sexual abuse.

“The NSW Government is listening to advocates who have called for a ban on this predatory and exploitative practice that worsens the trauma experienced by victim-survivors.

“We have carefully consulted with the community and are moving to stop the harm inflicted by this egregious behaviour.”

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