ABI hits back over referral fee legal threat

The ABI has urged the Government to push ahead with the referral fee ban, despite threats by the Claims Standard Council that it may force a judicial review of the decision.

An ABI spokesman said: “The Government must press ahead with implementing its ban on referral fees as part of much needed reforms to our civil litigation system, which must also include reducing excessive legal costs.

“Referral fees are a symptom of our dysfunctional compensation system costs where genuine claimants too often get the compensation they deserve despite the system not because of it. Supporting them is to defend the indefensible.

“Banning referral fees across the board will not deny access to justice to those who need it but will put a  stop to nuisance calls and texts encouraging people to claim, and reduce the scope for exaggerated and fraudulent claims which end up being paid for by all insurance customers and taxpayers.”