Law Society Wants Legal Referral Fees Banned

Tue, 24 Nov 2009

Brokers have voiced their anger at proposals from the Law Society to ban referral fees involving the legal profession . The Law Society is presently lobbying the government and the Legal Services Board to ban such legal fees, and could see an end to the payment of fees for referrals of legal work, including claims management cases, conveyancing and will writing. Mortgage brokers are likely to be the hardest hit, as many have established relationships with solicitors and claims firms where they either get paid a set referral fee or take a cut of the legal costs earned by the law firm as a result.

The Law Society represents all UK solicitors, and is claiming that referral fees don’t have a place in the markets for legal services. However, the society does not have the power to change the rules, and must persuade the Solicitors Regulatory Authority that a change is required. The Law Society feels the referral fees can result in limited access to justice and can reduce the quality of legal services provided by legal firms .

A consultation will be carried out in the coming months, with solicitors, lawyers, barristers, brokers and regulators set to get involved in the debate.
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