Legal Cost Specialists

Government to ban referral fees

The Government has announced it will ban the payment of referral fees in personal injury cases.


7 thoughts on “Government to ban referral fees”

  1. The claim that premiums have increased due to referral fees doesn’t stack up. As recently exposed, a large amount of the referral fee is paid by the solicitors to these insurers who are increasing fees because of referral fees, so basically the money sloshing around will stop, but £10 says the insurance premiums will not come down.

    Likewise, marketing costs will increase for individual firms. I do not advocate that referral fees are good or bad, just inflated, so why not just cap them as some kind of marketing cost has to be attributed per case.

  2. the insurers use the refferral fee point, fuelled by the tabloid press, to frighten the consumer, and further manipulate the system to their own ends

    The insurers will be the biggest loosers – a certain well known one hailing from east anglia are the country’s biggest refferer I’m reliably told.

    All that will happen is the refferal fees will be dressed up as something else and go underground like it was before – anyone for “”!!

  3. Defendant Solicitor

    Of course, with ABS one can simply buy a CMC and share profit- fine for the big fish but not so good for the high street firms. Will this mean the end of CMC’s? Sadly not. Marketing and capture costs have to be paid at some point and ultimately (and this won’t be popular with my FOIL colleagues) the insurer must pay them if their policy holder has been negligent. Insurers are rather getting it all their own way aren’t they?

  4. On a slightly different topic there are headlines in my local paper this morning :MILLIONS WILL BE LOST BY NHS TRUSTS AS A RESULT OF PERSONAL INJURY REFORMS. It seems that the NHS recouped £196m in treatment costs as a result of successful PI claims last year and if there is a significant drop in claims as a result of Jackson there will be a black hole in Health funding. It seems that it is not just the legal profession who will have less bread on the table in coming years !

  5. following on from this …… as one of my Defendant friends said to me and along these lines

    someone must have done some serious maths on this. How much is the government going to lose in corporation tax, earnings tax and NI etc.

    if they cut profit in the market across both Defendant and Claimant then then above will go down. Even more so if it leads to redundencies.

    This then has to be weighed against the costs that will be saved

    would be interested to see the calculations undertaken

Leave a Comment

Your email address will not be published. Required fields are marked *

Post a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll to Top