Referral Fees

If you are unfortunate enough to be involved in an accident whether it occurs at work, on the road or on the street, then the advertisements that we each see everyday on the television may suddenly appear far more intriguing. There is a plethora of companies who are able to point you in the direction of a personal injury specialist following a simple phone call. However, is it really as simple as that?

The company that you decide to call is, more likely than not, a claims management company, a “CMC” for short. These CMC’s are generally not personal injury specialists themselves but in fact a company that passes you information onto a solicitor who can assist you in obtaining the compensation that should rightfully be awarded to you. All this seems fair and honest enough you may think. However, when the layers are peeled back it becomes apparent that the solicitors that receive the injured party’s information in order to pursue their claim are in fact required to pay for the information; can be as much as between £600 and £800 per case, and on occasions significantly higher.

Up until 2004 solicitors were unable to pay for information from third parties. In 2007 the regulation of CMC’s began and the number of these companies increased beyond the government’s original expectation. Claims Management Companies turnover is around the £382 million mark per annum significantly contributing to our economy. Referral fees are not only used for Personal Injury Claims but other areas of law too, such as Contract Law. The majority of solicitors firms use referrals from CMC’s and some firms are solely reliant on “bought” referrals from third parties.

CMC’s and referral fees are currently being reviewed and the pre 2004 position maybe reverted to. Having a third party pass this information can form a crucial part of solicitors businesses as the advertisement schemes, such as those you see on TV reach out to a wide and diverse collection of potential clients. It is postulated that referral fees have increased the costs of claims and brought no benefit to clients or solicitors, as individuals are treated as a commodity rather than an individual. Should they be banned if they are not affecting the service that you are receiving or if the information is disclosed at the start and it does not put you at a financial disadvantage?

SAS Daniels LLP is proud of its Personal Injury Department and will always strive to maintain a very personal and bespoke level of service. We understand that our client’s personal injury claims are extremely individual and should be dealt with as such. When all is considered what is more important than your health? Injury leading to a potential inability to provide financially for one’s family is a terrifying prospect. We believe that our clients deserve the best of personal service as every client and their concerns are unique. We treat every case individually and with the same amount of care, commitment and dedication as the next.