Government to ban referral fees
The government has pledged to ban the use of referral fees as part of what it calls its commitment to curb compensation culture.
The government has said it will ban the payment of referral fees in personal injury cases as the current arrangements had led to high costs, encouraged a compensation culture and led to the growth of an industry which pursued claimants for profit.
Justice Minister Jonathan Djanogly said: "The 'no-win, no-fee' system is pushing us into a compensation culture in which middle men make a tidy profit which the rest of us end up paying for through higher insurance premiums and higher prices.
"Honest
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