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The truth about 'no win, no fee'
Q7 Can you explain what ‘no win, no fee’ means?
Beware! Not all ‘no win, no fee’ arrangements are the same!
Think about it. It's confusing, isn't it? What does ‘no win, no fee’ actually mean? Does it mean if you DON'T win, there will be no fees or even, perhaps, no costs at all?
Or does it mean if you do win, as you hope, then you can be sure there WILL be fees? And does that mean other costs too?
Well, as you might expect, it means different things to different people. So it's important you really understand the implications of a ‘no win, no fee’ arrangement if it’s offered to you, as is likely.
But let's be clear: ‘no win, no fee’ doesn’t always mean ‘no win, no cost’!
First, a bit of background. In the great majority of cases, Legal Aid (now replaced by The Legal Services Commission) is not available for personal injury claims. However, in many cases, people cannot afford to contemplate the cost of making a claim. In response to this, the personal injury claims community of specialists and solicitors has developed the practice of claiming on your behalf on a ‘no win, no fee’ basis. This is sometimes known as a ‘Conditional Fee Arrangement’.
‘… the solicitor will take on your case if he thinks there is a reasonable chance of success’A ‘no win, no fee’ arrangement is by far the most common. A solicitor, whether appointed directly or through a personal injury claims specialist, will only take on your case if he thinks there is a reasonable chance of success. Under the CFA agreement, he will make no charge for his services until the claim is settled. If you win the case he will negotiate a success fee which is usually recovered from the defendant’s insurers.
While this is by far the most common arrangement, some will only proceed with the proviso that there is some ‘retention’ from your award compensation to cover things like ‘administration’ charges and other costs. No win, no fee? We don’t think so!
‘Usually, you will not have to contribute towards the cost of premiums as … this will be paid by your solicitor’In addition, it is possible you may be asked to take out insurance to cover the eventuality that your claim fails in court and you are required to pay the other side's legal costs. Usually, you will not have to contribute towards the cost of the premiums as it will have been arranged that this will be paid by your solicitor. However, some solicitors require you to pay all or part of the insurance premiums and other expenses.
‘There are any number of companies … offering 'no win, no fee' agreements but that actually take a proportion of your compensation award’There are any number of companies seeking to profit out of your accident claim by offering 'no win, no fee' agreements but that actually take a part of your compensation award, rather than their fees and costs being funded entirely from the defendant or his insurers.
‘Conditional Fee Arrangements’ are not allowed in Northern Ireland and the law in relation to them is a little different in Scotland so, before you do sign any such agreement, make sure you’ve asked all the right questions of your personal injury claim specialist or solicitor if you want to avoid signing away a proportion of your award. If you are in any doubt, see the ClaimsGuide recommended criteria for choosing a personal injury claims specialist?
‘No win, no fee’ arrangements are the usual way personal injury claims are progressed, but beware! If you’re asked to sign a ‘Conditional Fee Agreement’, make sure you’ve properly understood what it means. Remember, in most circumstances, if you use a personal injury claims specialist who meets the ClaimsGuide recommended criteria, you should not have to pay any costs, fees, commissions or charges of any type at any time – win or lose
The truth about 'no win, no fee' |
Got a question that isn’t answered here? Want to ask an expert? Here At ClaimsGuide, we think there are 10 key questions you should consider asking any personal injury claims specialist you are thinking of dealing with. Get the right answers and you’ll know you’ll be dealing with someone who is going to look after your claim in the best possible way. Show me the questions What are the ClaimsGuide recommended criteria for choosing a personal injury claims specialist? Show me the checklist Show me the list of personal injury claim types Are you ready to claim through a personal injury claims specialist who meets the ClaimsGuide recommended criteria - that is, can answer all 10 questions in a way that satisfies us? Here |