Cameron supportive of referral fees ban
A ban on referral fees has edged one step closer with David Cameron admitting he is ‘sympathetic’ to the idea this week.
The prime minister was drawn into the debate on the fees by a question from Liberal Democrat MP David Ward during PMQs on Wednesday.
Ward said there were young drivers in his Bradford constituency being quoted up to £53,000 to insure their first car, even if they had no convictions or claims.
And he laid the blame for ‘ridiculous’ premiums with insurance companies selling fresh details to personal injury lawyers.
In response, Cameron said former justice secretary Jack Straw had made a very powerful case last month for an outright ban on referral fees.
The prime minister added: ‘There was a report to the government calling for referral fees to be banned. I am very sympathetic to this, and I know… the justice secretary is too, and we hope to make some progress.’
A ban on referral fees was one of the recommendations made by Lord Justice Jackson last year in his blueprint for litigation reform.
Last week justice minister Lord McNally also indicated he was ‘sympathetic’ towards a ban.
The justice minister Jonathan Djanogly has said the government will analyse the findings of a report by the Legal Services Board before deciding what action to take on referral fees, adding the department is to ‘look carefully’ at all issues.
The Law Society has written to justice secretary Kenneth Clarke to formally urge him to act over the fees, calling for a ban on a system that is ‘ethically wrong, treats accident victims as commodities for sale and adds no value to the justice system’.
Comments
The law society have not
The law society have not thought this through.
If referral fees are banned the biggest firms with hundreds of staff and a number of offices wont have enough work so redundancies will happen. They are supposed to support the profession not act against us, what about all the fees they will lose for certificates, does Mr Cameron want thousands more on the dole and also not get all the tax and NI we pay. Joined up thinking simply does not come into this but then again what do you expect?
I do hope that insurance brokers are now going to be closed down. The insurers pay them a referral fee for obtaining the business which is passed onto the policyholder in the premium. What is the difference exactly, sorry I forgot one rule for the fatcat shareholders and one for us.
Are you for real? So the
Are you for real?
So the integrity of the profession, which was damaged by referral fees, should be prostituted further because some firms won't get work?
Tell you what, why don't they put the money they spent on referral fees into advertising? Presumably the clients who need their services are still out there-if they aren't it just shows that the referral fees system created an unreal demand.
With an attitude like yours, it is unsurprising that the public believe solicitors are greedy grasping shysters.
Your post shows a complete
Your post shows a complete lack of understanding of how markets work.
The total amount of genuine work in circulation will remain the same and will be more spread out. Firms will make more money because they don't have to pay the referral fees. This may indeed create more jobs because firms will keep more money.
One firm's loss will be another's gain so the jobs will not be lost but rather move around.
The point about referral fees is that they do not add any value to the process. The fees do not serve any purpose.
The firms that might loose out are the factories that are doing volume work. Frankly who cares if they go. That would be good for the profession. It would restore credibility and would be a small step to restoring the integrity of the legal profession.
So what?
So what if the big factory lawyers go out of business. They have done our profession the greatest dis- service by looking at profits above service. They are busy not for the quality of work but because of the amount of bribe they pay. I see what you say about insurance brokers but at least the bribe taken is quoted on the policy and therefore the end buyer can choose. Can the same be said about lawyers referrals fees which are hidden from clients.
Get in the real world. You
Get in the real world.
You work for money that's it you dont give a rats ass about the client.
And the comments that you would like to see firms go out of business is amazing, in fact with that kind of thinking go join the conservatives.
Also please put your name to things, you are allowed an opinion.
Yes, everyone works for
Yes, everyone works for money-the way its done is, however, important.
If you don't understand that then you shouldn't be in the legal profession-a well known news company would be the place for you.
I contacted a company to help
I contacted a company to help me with my claim as my insurer was more than useless. They protected my excess, no claims bonus, got me a hire car, my vehicle repaired and provided me with a local solicitor. The company was so helpful and efficient. I would not of had this level of service from my insurer! If any body I knew had an accident I would tell them about this company as they helped when others didn't.
I have always had to pay high insurance. I'm sure there is a lot of other contributing factors as to why insurance premiums have increased.
Lee,
But the point is your insurance should not be so high.
It is high because of the fraud encouraged by referral fees.