Employment related NEWS
Tag referral fees - Lloyds syndicates
-
20th February 2007
Lloyds insurer syndicates embroiled in the fall out
resulting from The Accident Groups collapse, have decided to seek a recovery of
any referral fees paid to TAG by solicitors. The fees were part of the "package"
offered by TAG and are deemed to be potentially against Law Society rules. The
fees were known as "investigation fees".
The Law Society does not favour referral fees in
certain circumstances. It remains a matter of debate as to whether the TAG
referral fees were "illegal" in this context. Source -
LAW
SOCIETY GAZETTE
The Accident Group (TAG) went bust in 2003 and many
solicitors who received regular work from them became heavily involved in the
counter litigation that followed the collapse. TAG famously sent notice of
redundancy to staff by text message.
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