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31 May 2012

Law Society Says Comprehensive Ban On Referral Fees Needed

 

The Law Society of Northern Ireland has said that it welcomes the decision by the Office of Fair Trading to refer the car insurance market to the Competition Commission for investigation into the cost of car insurance.

Claims Management Companies offer certain services to victims of road traffic accidents including car hire and repair. In England and Wales they are regulated by the Ministry of Justice. Furthermore legislation recently passed there prohibits the payment and receipt of referral fees.

Similar protection for consumers in Northern Ireland is absent.

Commenting, Rory McShane from the Law Society said:

“The Society is calling for regulation of all Claims Management Companies in Northern Ireland and for an absolute prohibition on the payment and receipt of referral fees by all those parties to whom victims of road traffic accidents have dealings with in the wake of an accident”.

Mr Rory McShane, former President of the Law Society is available for interview and further comment on this issue particularly in relation to referral fees. He is based in Newry. Please contact Paul O'Connor at the Law Society 028 90231614