Cash incentives for personal injury claims to be banned
Peers have approved plans embodied in the Criminal Justice and Courts Bill to ban firms from offering money and iPads as incentives to clients to bring personal injury claims.
Firms were offering as much as £250 to pursue a personal injury claim, Justice Minster Lord Faulks told peers on 24 July 2014.
He said the offering of rewards for bringing claims contributed to the so-called "compensation culture" that the government was trying to stamp out.
Giving out incentives could also have a "detrimental effect on the quality of service" provided to clients, the minister warned.
Banning these schemes, Lord Faulks argued, would also help prevent clients being conned by firms, who he said often deny the money or benefits promised due to "terms and conditions".
Offering Labour's support to the measures during committee stage scrutiny of the bill, justice spokesman Lord Beecham urged the government to also tackle the cold-calling industry that had "built up around" personal injury claims.
"The problem does not stop with the inducements offered by solicitors," he told the House.
Lord Beecham said he hoped the measures would help stop the drop in standards in solicitors firms caused by the "commercialisation" of the industry.