When an individual has suffered an accident which was not their fault and have sustained injury as a result, nowadays they are normally aware that they may have a claim for personal injury. There are many adverts out there by a number of companies stating that they can help you claim compensation for your injury. Many of these adverts may be from law firms and many of these may be from claims managements companies.
Claims management companies are companies which commonly refer personal injury claims, as well as other types of claims, to law firms. This can commonly attract a ‘referral fee’ paid by the law firm to the claims management company.
Legal Aid, Sentencing & Punishment Of Offenders Act 2012 (LASPO)
From 1 April 2013 a law known as Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO) is coming into force which will prohibit paying (or receiving payment) for referring a personal injury claim.
This means that there will be a major shift in how individuals begin their journey into making a personal injury claim. Where individuals in the past may have made contact with a claims management company and then been referred onto a law firm, individuals after 1 April 2013 may be more likely to complete their own research into law firms, making a more informed decision on who they want to instruct for their personal injury claim, and contacting the law firm directly.
The LASPO Act introduces many other reforms which will have a major effect on personal injury claiming for both lawyers and claimants alike.
If you have any questions in relation to the topics discussed in this article, please contact our expert Personal Injury team in Derby, Leicester and Nottingham on 0800 024 1976 or via our online form.