piBlawg

the personal injury and clinical negligence blog

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Referral Fees to be Banned

 

The Government has today announced that it will ban referral fees in personal injury claims. Just a week ago I published an article on the Butterworths Public Injury Law Forum (http://www.personalinjurylawgroup.co.uk/index.php?/Opinion/the-insurance-industrys-dirty-secret.html) setting out the criticisms made of referral fees and the proposals for reform. 

Lord Justice Jackson recommended a ban in his "Review of Civil Litigation Costs". However the Government initially seemed ambivalent about such a measure, stating in June that referral fees were only "only a small part" of the no win, no fee system for personal injury claims. However in July the Prime Minister indicated that he was ‘sympathetic’ to the idea of a ban. It is now clear that the Government wishes to pursue this measure. 

There is currently no timescale for implanting a ban. However the Government is hoping to have such a measure included in the legal aid bill, possibly by Easter next year.

 

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