Referral Fee Ban
RTR Supports Goverment ban on Personal Injury Referral Fees
The government announced on Friday that it plans to ban the practice of paying referral fees in return for personal injury claim leads*. While many accident management companies and PI law firms stand to lose out considerably, Barnsley based accident management specialist RTR UK Ltd has welcomed the news.

This may seem like a strange reaction from an accident management company but MD Paul Hoyle explains why a ban on referral fees is a good thing, not only for RTR but for the industry in general:

“The name of accident management has been sullied by the unscrupulous practices of many in the way they acquire and pursue accident claims leads. This has an adverse effect on everyone in the industry. The ban on referral fees, a development that we anticipated several years ago, will level the playing field, meaning that those in a position to refer cases where accident victims need support, will choose whom they refer to based on standard of service and reputation and not on who offers the largest fee.

The ban will sort the wheat from the chaf and those who had to rely on offering referral fees to get their business will soon start to disappear leaving only the responsible, regulated accident management companies.”

In 2009 RTR created its pay as you go breakdown assistance, Road To Recovery, in anticipation of this ban in order to provide a direct line of communication with those in need of accident management services. The Road To Recovery scheme also provides the VRO network with high volumes of business meaning they are less reliant on the receipt of referral fees.

Of course referral fees will not disappear entirely. The ban is only to be effective against fees paid for PI claims. Accident management companies who offer a range of services including car hire, recovery and repair will still be able to offer fees for referrals made on this basis. As long as regulation and government guidance allows it RTR plans to continue to offer this to recovery operators.

RTR, already regulated by the Ministry of Justice, has long been an advocate of increased regulation and wide spread adoption of a code of best practice in behaving responsibly when offering support and services to the victims of road accidents and incidents.

RTR UK Ltd Dovecote House Middlecliffe Lane Little Houghton Barnsley South Yorkshire S72 0HW - Company Registration No 5174365 - CRM No 2737 - Regulated by the Claims Management Regulator in respect of Claims Management activities, its registration is recorded on the website http://www.justice.gov.uk/claims-regulation -  This website is copyright of RTR UK Ltd - Complaints Procedure

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