Overview

In the past 10 years there has been a revolution in the way in which litigation, particularly personal injury litigation, is conducted. Only 10 years ago the Access to Justice Act allowed solicitors to act on a ‘no win, no fee’ basis. Solicitors were then allowed to advertise for business. Finally there was a change in the Solicitors’ Referral Code, allowing solicitors to pay referral fees.

In tandem with these changes, there has been a huge rise in claims management companies that act as intermediaries between the general public and law firms. Many law firms use claims management companies as quasi marketing companies, seeing the payment of a referral fee as a marketing expense.

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