Urgent Dealer and Ministry of Justice Update with regards to referal fees

Dear Dealer

I am becoming very concerned! Whilst we have been working with dealers promoting our crash detector devices, we have been told by a number of them that their accident management partners (people to whom you refer claims) are telling dealers that you can still support them once the referral ban comes into force in April next year. This is what worries me as I care about the motorcycle industry and more importantly, the motorcycle dealer network in the UK today.

Please see what your rights are;

1. You pass your referral to an accident management company, they hire out a bike and could make as much as £3,000
2. Once having received your referral, the accident management company then passes it on to their solicitor partner who could make anything between £1,200 - £50,000 and above;
3 .Until 1st April you are entitled to referral fees, so what I am suggesting is that you request more money for those referrals - as at the end of the day these are your customers and you are the ones making the least money. So act today - negotiate more for your business until the 31st March!

Please see the following link from the Ministry of Justice which is the government's official website: http://www.justice.gov.uk/claims-regulation/information-for-businesses/referral-fees-ban-in-personal-injury-cases

To add clarity I have outlined a brief summary of this for you below

Ban on referral fees
In April 2013 the ban on referral fees will be implemented by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO). Provisions in part two of LASPO make it a regulatory offence to pay or receive referral fees in personal injury cases.
The ban will capture all the main businesses involved – solicitors, claim management companies and insurers. Any breaches of the ban would be subject to appropriate regulatory action by the relevant regulators, the Solicitors Regulation Authority (SRA), Financial Services Authority (FSA), the Bar Council and the Claims Management Regulator.

Next Step....

• Understand your rights from the Ministry of Justice
• Negotiate more for your business while you can
• Protect yourself and your business - by removing all marketing material from accident management companies before 1st April 2013.
• Cut all relationships with accident management companies to protect yourself further.

I Brad Parry, CEO of BIPSOS, former CEO of BLD, hope that you take this in the spirit that it has been delivered to you. I have only spoken to a sample of dealers however I do know that the accident management companies are proactive amongst all of the motorcycle dealer networks. Therefore I am sending this ahead of my contact with you.

Have a wonderful Christmas and I wish you all the best with your business in 2013. From one biker to another, please protect your business and take advantage of this information I have provided for you. The accident companies may hate me for doing this but I care about you more than them.

Kind Regards