With all the controversy surrounding personal injury claims and more specifically referral fees we decided to give you all some information about personal injury. The BBC says that the referrals system is essentially another way for law firms to market their services.
Referral fees have been around for 20 years starting in the 90′s when regulations on lawyer marketing were relaxed by a Labour government that included, you guessed it, Jack Straw the man who started all this controversy.
The problems began when one of Mr. Straw’s constituents was apparently bombarded with calls and texts following a car accident. This is a case of a few bad eggs ruining it for everyone as this sort of aggressive cold calling is not the tactics of every company dealing with personal injury.
With people calling for referral fees to be banned so far only one insurer, Axa, has said that they will stop accepting referral fees. However the Solicitors Regulation Authority has simply called for solicitors to ensure that any referral system in place should not compromise their client’s interest and back in May the Legal Services Board recommended the referrals system should be made more transparent but in no way called for a ban on referral fees.
The government has pledged to reform the system but some MP’s are calling for referral fees to be banned altogether. So what are the two sides of the story?
Well those supporting a ban say that it will force lawyers to win clients purely on quality and cost and will bring down legal fees. Those against say it will make things extremely difficult for poorer people to gain access to justice particularly if no win no fee is banned. Now surely regardless of your income people deserve the same level of justice something that MP’s obviously aren’t concerned about as long a ban will reduce legal fees for the rich.
No win no fee is there for everyone to be capable of seeking justice not just those with huge bank accounts.