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Personal injury referral fees are banned: what that means for you

· By London Solicitors Guide
A wooden chair with a walking stick leaning against it in the corner of a bare cream room

Referral fees for personal injury cases are banned for regulated persons. In short, a regulated person who refers this kind of legal business cannot be paid for the referral, and cannot pay for one either. London Solicitors Guide refers no claims, so this guide explains the rule and what you can check yourself.

The short answer

The ban applies to regulated persons, so the rule sits with them, not you. Section 56 bars a regulated person from paying or being paid for a prescribed referral. However, the bar covers prescribed referrals only, so it does not reach every introduction.

This site refers no claims. It has no claim checker, and it does not match you with a firm. You can read about the subject on our personal injury guide page, and you decide for yourself who to approach.

What the law says

The rule comes from section 56 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012. It puts rules against referral fees on regulated persons. A regulated person breaches it in two situations. First, they refer prescribed legal business and are paid for the referral. Second, they pay for a referral made to them.

Both directions matter, because the rule covers the person paid and the person paying. As a result, a regulated person cannot pay or accept a fee for a prescribed referral.

Another rule is worth knowing about. Section 21 of the Solicitors Act 1974 makes it an offence for an unqualified person to pretend to be a solicitor on purpose. The same offence covers using a name, title or description that implies they are qualified, or recognised by law as qualified, to act as a solicitor. A fine can follow on summary conviction. Therefore, it is sensible to check who you are dealing with before you share any details.

Why this site shows no personal injury listings or forms

London Solicitors Guide does not refer, match or sell personal injury claims. It lists no firms and has no claim checker. As a result, you will not find a form here that starts a claim, because the site does not take claims at all.

There are two reasons to say this plainly. First, you should know that this site will not hand your details on to anyone. Second, being clear helps you judge any other site that offers to pass your details to a firm.

The contact form is for questions about this site, not for a legal problem. However, this site takes no injury enquiries and lists no injury services. Our guide stays on the subject of how to find and check a legal professional.

What to check yourself

Because nobody here matches you with a firm, the checking is yours to do. Start with regulation. Our guide on how to check a solicitor is regulated shows you where to look and what the result means.

Next, before you agree to anything, ask whether the firm acts on a conditional fee agreement and what happens to the fee if the case is lost. The Conditional Fee Agreements Order 2013 caps the success fee at 25 per cent in personal injury proceedings at first instance. That percentage applies to damages for pain, suffering and loss of amenity and to past pecuniary loss, net of sums recoverable by the Compensation Recovery Unit. However, in all other proceedings the cap is 100 per cent, and our guide to no win no fee explains the idea in plain terms.

Finally, ask about insurance, and ask for the answers in writing. A written reply gives you something to compare later, and a firm that explains its costs clearly is easier to judge. If an answer is vague, ask again before you sign.

Road traffic claims and the government service

Official Injury Claim is a free and independent online service. The Motor Insurers’ Bureau built it on behalf of the Ministry of Justice. It is for people with minor injuries from a road traffic accident. Therefore, it serves those who want to claim compensation without legal help.

Official Injury Claim says it delivers government policy for road traffic accident personal injury claims under £5,000, rising to £10,000 for all losses from the accident. That applies to people injured in a road traffic accident on or after 31 May 2021. Read the service’s own pages to see whether your case fits, because the limits are specific.

Time limit

A personal injury claim has a time limit. Under section 11 of the Limitation Act 1980, a personal injury action must not be brought after three years from the date the cause of action accrued. If it is later, the date of knowledge of the person injured can count instead.

However, exceptions exist, so do not assume the three years always run from the accident. Because the rules can be tricky, note your dates early. Write down when the injury happened and when you first understood its cause. Then take the dates to a regulated professional, and use our check-a-solicitor guide before you choose one.

Frequently asked questions

Are referral fees for personal injury claims allowed?
Not for regulated persons. Section 56 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 puts rules against referral fees on them. A regulated person breaches it by referring prescribed legal business and being paid for the referral. They also breach it by paying for a referral made to them.
What is Official Injury Claim?
Official Injury Claim is a free and independent online service. The Motor Insurers' Bureau built it for the Ministry of Justice. It helps people with minor injuries from a road traffic accident claim compensation without legal help. It says it covers claims under £5,000, rising to £10,000 for all losses, for accidents on or after 31 May 2021.
How long do I have to make a personal injury claim?
Section 11 of the Limitation Act 1980 sets a three-year limit for personal injury actions. The three years run from the date the cause of action accrued, as section 11 states. However, the date of knowledge of the person injured can count instead, if it is later.

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