A TOP north Derbyshire lawyer has welcomed Government plans to ban insurance and claims-management companies from selling personal injury victims’ cases to solicitors.
John Spencer, of CS2 Lawyers, of Chesterfield, has been campaigning for years to bring in a ban on controversial referral fee payments for personal injury claims which he believes have been undermining civil justice reform.
He feels referral fees damage the system by creating questionable commercial incentives which create costs elsewhere and push up insurance premiums for others.
Mr Spencer said: “This is an important and powerful first step in setting things right.
“I’ve long argued referral fees represent the root cause of dysfunction and create perverse commercial incentives which add no value to claimants and help to line the pockets of many market participants.”
The Ministry of Justice announced its plan to ban referral fee payments for personal injury claims last month to clean up the personal injury claims market, tackle rising insurance costs and curb the compensation culture.