Jackson LJ's call for referral fee ban "misjudged"
One of the UK's leading referral networks has said the proposal in the Jackson review to ban referral fees was "misjduged".
One of the UK's leading referral networks has said the proposal in the Jackson review to ban referral fees was "misjduged".
James Vintin, managing director of Contact Law, which refers clients to over 500 law firms, said: 'Everyone wants to see the cowboys shut down, but that is best achieved by proper enforcement of the existing rules.
'There is no doubt that referral businesses are needed to stimulate competition and to help consumers navigate round an incredibly diverse and complicated legal profession '“ that is a conclusion the Office of Fair Trading has also come to.'
Vintin said that although some insurance companies and unions were still referring personal injury work to a handful of preferred law firms, a network like Contact Law could choose from over 100 different pre-screened law firms covering all areas of law, not just personal injury.
Vintin said that without referral networks it would be remarkably time consuming and difficult for individuals to navigate the UK's legal market.
'Calls to ban referral fees for personal injury cases are misjudged considering the many benefits referrals bring to both consumers and law firms,' he said. 'With the legal market currently facing the huge challenges of the Legal Services Act, referrals are more important than ever in linking consumers to relevant legal practices.'
Craig Holt, chief executive of QualitySolicitors.com, a referral service operated by 200 law firms and paid for by annual membership fees, welcomed Lord Justice Jackson's proposed ban on referral fees.
'Consumers often come to us for help finding the best solicitor for their case specifically because we make clear that we don't sell on their case like the typical claims farms,' he said.
'People don't want their accident to be traded in this way. Instead our members simply pay an annual membership fee towards the costs of the organisation. This prevents the problem of cases being sold to the highest bidder.'
Holt said he had heard of accident victims' details being sold by claims management companies to solicitors for more than £1,000.