The referral fee system in the UK is a multi-million pound industry, according to personal injury solicitor experts speaking out against the practice.
Personal injury lawyers, courtesy car companies, recovery firms, and other organisations related to the motoring industry will routinely pay fees to gain access to lists of those that may have been injured in road traffic accidents. While it is legal for these organisations to do so, one leading industry body has reported that nurses, doctors, and even police officers have begun handing over the names and contact details of accident victims for a profit, which contravenes data protection rules and is an illegal practice.
Moreover, some regions of the country have become notorious for the number of personal injury claims that occur therein. One such area is Bradford, where car insurance premium costs have spiralled out of control for many motorists.
The situation in Bradford has become so dire that David Ward, Liberal Democrat MP for Bradford East, has launched a campaign to institute legal reforms due to the massive increases in insurance costs to his constituents. Mr Ward began his campaign after learning how one young female living in Bradford was handed a £53,000 car insurance quote to purchase insurance for her Vauxhall Corsa, a nine-year-old car worth only £1,000.
While she expected to pay higher premiums due to her young age, the 20 year old woman was instead told that her quote was a result of her postcode instead, with the lowest quote available to her being £5,000. More of Mr Ward’s constituents have faced exorbitant insurance quotes as well, the Bradford East MP reported.