Lawyers back Jack Straw's bid to ban referral fees

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  • Funny that Jack Straw's coming out with this now - it's hardly a new issue and he could have dealt with it when Labour were in power.

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  • The reason Irwin mitchell doesn't agree with a ban is because it trades in these claims and makes a healthy profit from them. After it becomes a ABS this selling and buying will become more prominent. If it wants its say, it should declare an interest

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  • Straw did raise it when he was in power, but became overly obsessed with reforming the personal injury market. Now he is on the wrong side of the house there is nothing stopping him speaking out.
    Insurers aren't the only ones to profit from the fees, I suspect there are a few unions which keep afloat using them by selling claims to their firms... Thompsons for instance. It has to buy the claims to get to the claimant.

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  • not a good idea to ban the refferal fees.This should not be of Mr Straw's interest how the solicitors get their clients as long as it is with compliance with the rules. However the clients should be well informed about the amount the solicitors pay to referers.

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  • Why stop at banning refeferal fees? Why not abolish the insidious tort of Personal Injury itself?
    Some enlightened jurisdictions have a no fault compensation system. If you are injured in an accident why on earth should you have to find a suitable candidate to sue and then wait on the outcome of a court decision?
    Abolish the tort itself-everyone gains except PI lawyers and I am sure they can be retrained.

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  • We recognised that there was a gathering storm in relation to referral fees and launched an alternative business model in January this year.

    Now with many of the UK leading names in personal injury and medical negligence signed up to our model we have created a credible and ethical alternative to claims management companies and the referral fee industry.

    Limiting the panel to just 5 law firms per county and further restricting membership to just accredited law firms has created a panel of true quality throughout the UK.

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  • Kevin, considering that we are on the comments page of The Lawyer, I feel it is my duty to point out to you that personal injury is not a tort.

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  • Nothing has done more to damage and undermine the public's opinion in the law than claims management companies funded by referral fees.

    I appalude this decision and look forward to their outright ban.

    I'm sick of the ABI being on their high horse talking about personal injury solicitors making money from claims and raising insurance prices and then selling billions of pounds worth of claims to them. Bravo!

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  • To anonymous @ 8.54am ... PI is an action derived from negligence, which stems from a breach of duty - a tort, so let's not split hairs shall we!!

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  • Straw is a joke. When is he going to retire? There's no point banning referral fees because they will just find a way round it like a general retainer or use an abs model to take the work in-house. Retire Jack. You aren't in power any more. Labour lost the election.

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