No more referral fees

Interesting news on the legal funding front as the practice of paying referral fees, whereby insurance companies, breakdown firms or car repairers sell on information to claimant solicitors, is to go. The government (and industry figures) reckon it is pushing up premiums and encouraging compensation culture (if such a thing exists….). Ths, together with the Legal Aid and Sentencing Bill which will require any success fee to be paid by the claimant rather than the defendant, amounts to a radical shift in approach which may eliminate some spurious claims. Let’s hope that cases of genuine injury are not put off claiming damages where they are due, however.