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Referral fee ban has had little impact on RTA claims

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Despite the introduction of a ban on referral fees designed to reduce the number of road traffic accident (RTA) claims being made in the UK, the number of compensation claims made since the ban was introduced has actually increased by more than 25% on last years figures.

The ban on referral fees was introduced in April this year alongside other Jackson reforms but figures from the RTA Portal Company show that there were nearly 80,000 claims opened this April compared with just 63,000 opened in April last year.

In the run up to the introduction of the Legal Aid, Sentencing and Punishment of Offenders Act there was an increase in the number of claims made with over 91,000 people opening claims in March compared to less than 73,000 in February.

Interestingly, the number of claims opened in April was similar to the numbers for October and November last year as well as this January.

These findings come at an interesting time as the whiplash debate continues and is set to be heard in front of a House of Commons select committee.

The changes will undoubtedly take some time to take shape and the trends will gradually change however the many people were still making £1,200 claims prior to the 30th April. It may be that the real test of the new measures comes in May.

The Association of Personal Injury Lawyers has claimed that the claims numbers would barely be affected by the increase in the small claims court limit because all it would do is encourage people to use claims management companies. Sadly, this could pave the way for more and more aggressive marketing and cold calling from these companies who take on cases without having the expertise or qualifications to recover fair compensation awards.

To find out how to claim compensation following your RTA, dial 0800 1404544

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