This is a sum of money that a lawyer may pay an insurer in order to obtain the details of a person who has been involved in an accident, and could likely make a claim for compensation. Once they have the victims’ details they may cold call them or bombard them with intrusive text messages informing them that they could make a claim for compensation and that this lawyer could represent them. By paying the referral fee the lawyer has the first chance to convince the victim to instruct them to deal with their claim. Paying a referral fee is therefore a way of obtaining business.
Have referral fees always been around and how much are they?
It is estimated that referral fees have been around for approximately 20 years. Typically a referral fee will be in the region of £200 to £1,000 and the value ultimately turns on how much the claim is likely to be worth. For example, if the injured party’s injuries are particularly severe and long lasting, their claim will be worth a lot more than someone who has suffered a 2 month minor whiplash claim. As such, the referral fee for the more severe injury may be greater than the whiplash injury because it will ultimately net a lawyer more money in the long run through carrying out more work.
Why should you avoid using lawyers who pay referral fees?
There are numerous reasons to avoid firms that pay referral fees; here are a few:
- There are hundreds of law firms that specialise in personal injury – you should be able to choose which law firm you wish to represent you and whether you truly want to make a claim for compensation.
- You should not be bombarded with calls and text messages simply because a lawyer has bought your claim and is therefore eager to get you to ‘hurry up’ with your claim so that they can see a return on their investment
- You are not a commodity. You are the victim of a third party’s negligence.
- A lawyer who has spent £800.00 to buy your claim has £800.00 less to spend on your claim. This means the potential of minimal service levels and an all round poorer service.
- A lawyer who has paid a referral fee may try and recoup that fee from you.
At The Injury Lawyers we have never paid a referral fee and will never pay a referral fee – ever! We rely on our reputation and expertise alone. What’s more, we work under a genuine no win, no fee agreement which means no costs to you ever. So, if you have had an accident and believe you may be entitled to compensation, get in touch for free today on 0800 634 75 75.