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Jonathan Djanogly raises concerns about effectiveness of ban on referral fees for whiplash claims

4th September 2018

Speaking in a debate on the Second Reading of the Civil Liability Bill which reforms the claims process for whiplash claims, Jonathan Djanogly raises concerns that ways are being found to get around the ban on referral fees which was a key element in the Government’s efforts to stop whiplash claims.

Mr Jonathan Djanogly (Huntingdon) (Con)
One of the key elements of stopping whiplash claims and so forth was the banning of referral fees. There are more and more reports coming in that, perhaps for the resilience reasons that my right hon. Friend discussed, we are increasingly seeing ways of getting round the ban on referral fees. This is of great concern to many. These people are of course breaking the law. Has he considered this situation?

Mr Gauke
Of course we continue to look at this area. It is worth pointing out not just what we are doing in this Bill but the measures and action taken in the context of the Financial Guidance and Claims Act 2018, and it is right that we continue to do so. As I say, the Government are determined to find out whether the use of PPOs can be increased. We are very pleased that the Civil Justice Council, which is chaired by the Master of the Rolls, has agreed in principle to consider this issue.


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