You are here

Ban on referral fees in PI cases welcomed

The government’s plan to ban referral fees in personal injury litigation has been widely welcomed by the legal industry. Says Nick Richardson, an associate at law firm Willans and a specialist in personal injury law: “I am delighted to hear that the government is putting a stop to referral fees in PI cases. The ambulance-chasing industry has caused monstrous damage to the reputation of personal injury lawyers and to the legal profession in general and a ban is long overdue.

21 October 2011

Add comment

“This practice is bad for clients. In an average road accident case claim, once you deduct the cost of buying the case, the fee the lawyer earns is cut to the bone. In most cases it is simply not possible for a qualified lawyer to properly run such a case and make a profit.

“Either he will cut corners or more likely the case that the client thinks is being handled by a lawyer is in fact being run by an unqualified person relying upon a computer system to tell him what to do. Therefore it is the client who pays in the form of a seriously diminished level of service.”

The Law Society welcomed the ban but expressed disappointment that it is not being extended more widely, for example into the area of conveyancing. n

Categorised in:

Legal services