The Government have announced a ban on the current system of payment for referral of personal injury cases to solicitors and claims management companies.
 
In current practice, companies can pay as much as £1,000.00 up front for a client to instruct them regarding their claim for personal injury. However cases will not be allowed to be ‘bought and sold’ under the new system, which has been met with appraisal from the Association of British Insurers, amongst others.
 
The ban will not cover conveyancing cases and will be enforced as a regulatory rather than a criminal offence.
 
To read more, please click on the link below:
http://www.lawgazette.co.uk/news/government-ban-referral-fees-personal-injury-cases