You’ll probably already have heard about ‘no win no fee*’ claims, but do you know what it really means and how it affects you? Our solicitors will only work on a basis such as this with accident victims, because we believe that professional legal support should be available to everyone, no matter how much money they have in the bank. Here are the key facts about this agreement that you should know before you start on your journey towards a compensation claim:
No win and no fee* key facts
- These arrrangements are sometimes referred to as a Conditional Fee Agreement (CFA), but whatever your solicitor calls it, they both mean the same.
- The agreement is between you and your solicitor.
- This conditional agreement means that if your solicitor does not win your claim for you, then they will not charge you any fees.
- If your case is won, your solicitor will be able to claim their fee, although this is often paid by the insurance party of the losing party.
- If your case is lost, you could be held liable for the opposing party’s costs, including solicitor’s charges and court fees.
- To avoid this happening, you may be asked to take out an ‘after event’ insurance policy which will cover these costs and eliminate this risk to you.
Does it sound too good to be true?
If you’re thinking that it does, then let us explain. Solicitors who offer such a service do so because they have the opportunity to gain additional rewards when they win the case. A successful claim is often paid by an insurance company (the losing party’s insurance company) and when they pay your compensation, they usually pay the solicitors fees as well. Not only that, but depending on how much risk was involved in taking on your case, they will sometimes pay an additional ‘success bonus’ to the solicitor on top of their usual charges.
Of course, it is not all about the money. Solicitors in general genuinely like bringing justice to situations, and by offering a CFA or no win no fee agreement, they will be able to offer their services more widely, to a greater variety of people, and serve justice to more victims than if they were to charge up front for their services. Not only that, but by making legal support available to every innocent accident victim in an affordable way they are ensuring a regular stream of work for them, and lots of interesting cases to become involved with.
No win and no fee explained
When you are injured money can become an even bigger worry than before, especially if you have to take time off work and you’re losing pay because of that. Accidents not only mean that you can lose income but you may also have to spend money on taxi fares to and from the hospital (or your GP), medical prescriptions, additional care and more, therefore the thought of spending any more money is scary. This is where claiming compensation on a no win and no fee basis could really help you as the high cost of obtaining legal help is what deters a lot of people from filing a claim, even if they know the accident wasn’t their fault and they deserve it.
There are many ways an accident can occur, from a slip, trip or fall in a public place, an accident at work through to a road traffic accident where you could have been a driver, passenger or pedestrian. Sadly accidents and injuries are a tragic part of everyday life, but if you’ve suffered from an injury which was caused through the fault or negligence of a third party then you shouldn’t need to suffer financially as well.
No Win and No Fee Claims
Types of claims such as No win/no fee is an arrangement between you and your solicitor that you don’t pay any upfront costs for their services and if your claim is not successful then your solicitor is not paid for the work that they have done. A lot of people claiming will already be out of pocket financially so this can really help ease the worries about spending out even more money than necessary. If you do win your compensation claim then your solicitor is paid their fee through what is claimed from the opposing party’s insurance company.
As well as no upfront costs from your solicitor, if they agree to take on your case it’s because they believe in its chances of winning. They wouldn’t take on a case that they believed would fail because they would be losing out themselves financially due to this system. What this also means is that you know your solicitor will pull out all the stops and work hard in order to win your claim because not only will they help you achieve justice and gain your compensation but it also means that they will earn themselves a wage for their work.
Conditional Fee Agreement
Under a no win no fee agreement you will only be expected to pay your solicitors fee’s if the case is decided in your favour and typically these costs are a percentage of the compensation awarded which has been recovered from the insurance of the opposing party. You will need to sign an agreement before your solicitor begins your case which is called a CFA or Conditional Fee Agreement outlining these points.
As of April 2013 solicitors were permitted to set a maximum percentage of the damages you recover as their success fee- or payment. It has been settled on a maximum of 25% of the recovered amount but it’s always a good idea to ask those representing you of their payment terms before you sign the agreement.
How has no win / no fee claiming changed?
It was only back in 1995 that the UK introduced this type of compensation claim in order to help people to get a fair hearing and access to justice if they’d suffered, even if they couldn’t afford to pay large amounts for legal advice and legal representation.
In April 2013 things were shaken up slightly as the Government introduced changes to the system. Prior to April the losing side usually paid all of the legal costs associated with a claim but now solicitors offering such services had their legal costs from any compensation awarded.
No win no fee claiming
Almost all personal injury companies work on a no fee no fee claims process nowadays and so many places offer free legal advice online which is why it is so important to research your choices carefully to ensure that you are picking the right people to represent you. Accident Compensation 4UK are one of those companies who offer claiming on a no win no fee basis because we believe that everyone has the right to claim even if they can’t financially afford to do so!
If you’re considering making a claim on such a basis then simply give us a call, even if you just want some advice. You are under no obligation to make a claim. If you’d prefer us to call you then fill in the form on the right hand side and we will talk you through information about our service, your situation and provide you with honest advice as to whether you have a valid claim or not.