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Litigation Letter

The referral fee genie stays out of the bottle

A recent report prepared for the Law Society found it difficult to identify any firms conducting any great volume of personal injury and road traffic accident work who are not buying it by paying referral fees. On average, the number of personal injury cases conducted by firms paying referral fees is one hundred times that of those which are not paying. The main sources of introductions are insurance companies, who are the first point of contact for potential clients particularly in road traffic accident claims, claims management companies, which are able to identify potential cases far more quickly than most solicitors, car repairers and hirers. Firms which do not pay for referrals rely solely on their reputations, work from previous clients and other solicitors. There is very little of this work available. Also being sold are claims for accidents at work, industrial disease, public liability claims, and slips and trips.

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