Approximately, 2 million people each year in the UK are injured through no fault of their own.
Out of this number, only a third decide to make no win no fee claims for personal injury compensation.
In many instances, people do not even pursue a claim because they are not sure what a no win no fee claim is or have been misinformed about it.
In fact, this agreement means much more than what people typically think.
Getting the Real Facts
Back in 2013, there were changes made to no win no fee agreements and how you can claim them.
Prior to this change, people making claims were able to keep all compensation that was awarded to them and the losing party was responsible for all the legal costs.
Although there are some unethical claims companies that will have you believe that this type of agreement means you are not responsible for paying anything you successfully win your case, this is not true.
What this agreement means is that you won’t have to pay your solicitor any fees if you lose your case, however, you may still be responsible for paying the solicitor’s fees of your opponent and other disbursements like medical report fees, court fees and after-the-event insurance.
Risks According to Ombudsman
According to the FOS, there are basically two areas of concern in no win no fee claims that should be highlighted.
- Transfer of risk – The agreements have structural weaknesses to them which enable solicitors to pass the prospect of unrecovered expenses onto the client.
- Terms and Conditions are unclear – The agreements can be a bit complex and in some cases, solicitors are not making the financial risks associated with this type of agreement clear to their clients.
If you have been involved in a car accident, a workplace accident, slipped or fell in a public place or have been involved in another accident that wasn’t your fault, you have the right to claim compensation and a no win no fee agreement might be a wise decision for you.
Most solicitors will not even touch a case if they feel they cannot successful win it. This puts the consumer at ease knowing there is good probability they will win their case and the risks are not so daunting.
Most importantly, you need to choose the right type of lawyer for your needs.
Be sure to check all potential costs of your case, win or lose, even with no win no fee claims.
Speak to more than one lawyer which will help you to keep your costs down.
Even though these types of agreements sound simple and ‘free’, there can be and often are some fees associated with them.
As long as you ask your legal solicitor questions about your case and get really clear on all costs associated, you should be fine.
These claims have been proven to be the most cost effective ones.