Dominic Regan wades into the debate over referral fees
“I recommend that the payment of referral fees for personal injury claims be banned” (The final Jackson report, p 206). The payment of referral fees is “anti-competitive, a violation of privacy and a cartel against the consumer” (The Times, 27 June 2011).
During the 18 months between publication of these two statements a great deal happened and it appeared that referral fees would survive. It ain’t necessarily so.
I was told by a very senior civil servant in July 2010 that the new administration, while bent on drastic costs reform, was relaxed about referral fees. If solicitors wanted to spend their cash on buying work to do then let them.
Disappointment
May 2011 saw the publication of the Legal Services Board’s decision document on referral fees, referral arrangements and fee sharing. I was not alone in finding the report a disappointment. One of the largest insurers in the country rang me up because they could see no logic
