Referral Fees.

REFERRAL FEES

The Law Society of Northern Ireland has welcomed the decision by the government at Westminster to introduce legislation to prohibit the payment of referral fees in England and Wales.  In September 2011 the government indicated its intention to ban referral fees and on 1^{s t} November draft proposals were debated in the House of Commons.

A referral fee is a sum of money paid by insurers, claims management companies, garages or legal representatives in order to gain access to the contact details of those involved in an accident. 

The legal position in Northern Ireland is that the payment of referral fees by solicitors is strictly prohibited.  The Law Society of Northern Ireland has consistently argued that this is in the consumer’s interest.  However the payment of referral fees by claims management companies and others is not outlawed in this jurisdiction.  

Commenting Rory McShane, Chairman of the Law Society’s Litigation Action Group stated “The Law Society has consistently maintained that referral fees should be banned. I am pleased to note that this position has now been endorsed by the Westminster Parliament".

"It is now appropriate that local MLA’s and the Northern Ireland Assembly introduce draft proposals on referral fees similar to those being introduced in London. The Society urges the introduction of similar legislation in Northern Ireland”