Preston, Lancashire (PRWEB UK) 26 March 2013
A recent study has shown that nearly a fifth of personal injury law firms are considering shutting down due to Government reforms coming into force this spring. AYB Law thinks this will sort the honest firms from those who follow dubious claims.
Many personal injury lawyers pay third parties to refer personal injury claims to them, but Government legislation will soon put an end to this practice. The survey carried out by O’Connors LLP (and reported on through The Guardian on 21 March) asked over 300 North West law firm managing partners, of which 62% of the firms surveyed currently pay referral fees. It is through the forthcoming legislation change that legal companies must stop the whole referral fee system and source cases in other ways. AYB Law of Preston have recently stood up and spoke out about this, stating that the legislation change has been known for some time and law firms must consider other methods of generating business than by offering referral fees.
It is reported in The Guardian article that it is primarily those who are utilising the referral fee method who are considering closing their doors and ethical and reputable firms need not worry about the end of referrals as they will be able to continue with their strong base of clients without them. This may lead to a smaller range of choice for people looking for solicitors, but it should ultimately lead to people getting a better service first time, rather than having to deal with firms which are unsuitable.
A spokesperson from AYB Law has stated on the subject, "There is a worry that the changes will put a large number of people out of work, with a campaign group claiming that as many as 100,000 jobs could be lost over the next year, from admin staff through to the solicitors and directors. In addition to this change in the legal referral system there is also the change in Road Traffic Accident (RTA) portal fixed fee rates. With these two changes happening in quick succession, the less ethical law firms will undoubtedly lose out, but it should ensure that when people use firms in the future they are selecting from firms which stay within the law and maintain high ethical standards."
“With the removal of claims through referrals, claimants will be able to get a better service through more ethical law firms, rather than dealing with so called ‘ambulance chasers’ which have given lawyers and solicitors much bad press over recent years."
“With recent closures of high profile solicitors such as Blakemore’s in the Midlands, the future has looked uncertain for some solicitor practices. Here at AYB Law we have seen an increase in cases where claimants are coming to us for an honest, open service with guaranteed no-win, no-fee compensation rather than losing out with more unscrupulous firms."
“At AYB Law we will continue through this difficult time for other firms by sticking to our morals and credibility to ensure that each claim is handled correctly and meets everyone’s expectations.”