Govt bans referral fees for personal injury compensation claims

The government has announced that it will be banning referral fees for personal injury compensation claims in order to drive down costs for both the victim and the defendant.
 
The Ministry of Justice has announced that the current system has led to high costs that only benefit referral companies and have driven up the cost of insurance.
 
It made the proposals following a consultation that took part at the end of 2010 and which drew on evidence given during an independent review of Civil Litigation Costs carried out by Lord Justice Jackson.
 
Jonathan Djanogly, the justice minister, said that motorists in general bore the cost of these referral fees through heightened insurance premiums and higher prices.
 
Responding to the announcement, the Legal Services Board highlighted the fact that it had reviewed the impact of these fees earlier this year and concluded that there was no regulatory case for a blanket ban.
 
It added: "We will continue to work with government to ensure that any specific implications for legal services regulators are understood."

Published by Phil Hammond