The Citizens Advice Bureau (CAB) has called for claims management companies to be officially regulated.
According to a report from the CAB, 'no win, no fee' firms are failing accident victims by leaving them with little or no compensation and with hidden costs to pay.
More than 200 advice bureaus said claims management companies subjected injured people to high pressure sales tactics without considering personal needs.
The report also rejected the notion that a compensation culture had arisen in the UK. It said only one in three people who had a right to compensation after an accident made a claim.
