Impact of referral fees ban showing in Claims Management Report

Impact of referral fees ban showing in Claims Management Report

The Ministy of Justice Claims Management Report, published today, shows that following the law changes in April 2013, the number of claims management companies registered to handle personal injury claims has fallen from 2,435 in March 2012 to 1,700 in June 2013.

Justice minister Helen Grant said: ‘We have taken strong action to rein in the rogue firms which have gathered in this sector and the impact is now starting to show. Ending [referral] fees which fuelled a growing compensation culture has been an important step to reducing the cost of living for ordinary people - who have ultimately been footing the bill for them through their insurance premiums.’

Of the 450 CMCs visited across England and Wales, 141 were issued with notices to prove that they have not broken the referral fee ban since it was implemented in April.

 

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