The Solicitors Regulation Authority has warned law firms against misleading publicity as the government’s ban on the use of inducements by personal injury solicitors came into force yesterday.
The government has secured an amendment to the Criminal Justice and Courts Bill banning inducements for personal injury claims offered by unregulated third parties linked to law firms.
The Solicitors Regulation Authority will not introduce specific rules to deal with the upcoming legislative ban on personal injury law firms paying inducements to claim, but has pledged to take “strong enforcement action” if firms breach it.
The Association of Personal Injury Lawyers has successfully complained about an advertisement broadcast by high-profile Liverpool law firm Hampson Hughes that said claimants would receive £2,000 “up front”.
The government has gone ahead with its promise to ban personal injury lawyers from offering inducements, such as cash or iPads, to potential claimants by inserting a new clause into the Criminal Justice and Courts Bill.
There is no evidence to justify the government’s plan to ban personal injury solicitors from offering up-front inducements to potential claimants, the Law Society has argued.
The government announced over the weekend that it is to ban lawyers from “encouraging people to make claims” by offering them upfront incentives like cash or iPads. It forms part of a new wave of reform in personal injury targeted at insurance fraud.