Referral fee ban looms, but can it be enforced?

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Today, I simply point you to an article in the Guardian (I found this article thanks to the CSC Bulletin) regarding the forthcoming, well proposed anyway, ban on referral fees… Those of us within the industry and in the know so to speak, fully realise the pointlessness of these politically derived proposals… they won’t benefit claimants, society at large or the general public and will only benefit the massively wealthy Insurance sector in their never ending pursuit of even larger profits… That’s if the ban can be enforced anyway!

The article’s first lines indicate just how pointless the ban is, and more importantly, how difficult it will be to police “I pay a legitimate commission. You pay a shady referral fee. He pays a bribe. Welcome to the fierce debate over the impending ban on referral fees in personal injury claims”.

So what is a referral fee? Yep, it can’t be answered! Thankfully, the government has seen sense and decided against making the payment or receipt of a referral fee a criminal offence. It recognises the difficulty of defining a referral fee in such a way that ensures less straightforward arrangements are caught and lead to a conviction beyond reasonable doubt. While there is some sense in this, it also feeds the perception that the ban is more about politics and being seen to clamp down on the “compensation culture“. In part this is because the bill includes a crucial get-out clause. A payment will not be a referral fee if the regulated person can show it was “consideration for the provision of services or for another reason”.

So it looks like our wonderful Government are doing nothing more than blowing hot air up the you know what’s of the you know who’s in order to play politics and hope for more votes in the future!

Anyway, read the article in full!

Direct 2 Compensation Ltd remains committed to assisting vulnerable and injured clients in the pursuit of a just settlement for the suffering that they have endured.

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