Good to see Shadow Justice Secretary Jack Straw speaking out over referral fees which he says are a ‘scandal’ and should be banned. His opposite number in government Jonathan Djanogly has also pledged to get a grip on the situation which he described as ‘rotten’.
Contact Details Of Potential Claimants Traded By Firms
For the uninitiated the controversy surrounds the practice whereby a law firm will pay a fee typically to an insurance company estate agent trade union etc. for the contact details of somebody who might require their services.
In the Personal Injury sector an example would be a car insurer selling the contact details of a family who have been involved in a road traffic accident to a Personal Injury Law Firm who may then pressure them to be allowed to represent them in a claim for damages. As the individuals involved are often oblivious to the fact that their details were passed on it is essentially cold calling which must be most unwelcome after having recently been involved in an accident.
The fees involved vary but will typically be a few hundred pounds per ‘lead’. Unsurprisingly given the fees involved a whole industry has sprung up involving ‘middlemen’ who will buy and then sell on the contact details of accident victims.
Transparency Needed Regarding Referral Fees
It’s hightime that these fees were fully disclosed to clients and brought out into the open as they are a contributing factor in the increasing cost of motor insurance despite a recent decrease in the number of injuries caused by road accidents. Any transparency measures introduced or better still an outright ban would be welcomed by the legal profession and would also benefit the public by reducing costs for the average UK driver.
Here at Express Solicitors we tend to use more traditional methods to attract clients having built a reputation nationally and locally that is founded on exceptional client care and our ability to obtain maximum compensation for clients quickly and professionally.
Express Solicitors is a leading independent Personal Injury Law firm. If you have been injured in an accident that wasn’t your fault please contact us to discuss your claim free of charge with a specialist Personal Injury Lawyer.