Is there a catch with no win no fee claims?

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    How No Win No Fee Works

    With no win no fee agreements (also known as a Conditional Fee Arrangements, or CFAs), there are no upfront legal fees, which means anyone who has been involved in an accident that wasn’t their fault can gain access to justice without any financial risk. Your solicitor only gets a fee if your claim is successful. If your claim isn't successful, you won’t pay your solicitor any legal fees.

    If your case is successful, typically you will pay 25% (including VAT) of your compensation to your solicitor, although they will discuss any fees before starting your case. To ensure your claim is risk free, your solicitor may take out an insurance policy on your behalf. If you terminate the agreement, you may have to pay fees for the time already spent on your claim, or due to: lack of cooperation, misleading your solicitor, missing medical or expert examinations, or not attending court hearings.

    There are some instances where you are not required to use the services of a claims management company, and are able to claim yourself, for free, directly via the relevant ombudsman/compensation scheme. These include:

    - Criminal injuries: The Criminal Injury Compensation Authority (England, Wales, and Scotland) or the Criminal Injury Compensation Scheme (Northern Ireland)

    - Minor road accidents: The Official Injury Claim Portal

    - Accidents involving uninsured drivers: The Motor Insurers' Bureau

    Is there a catch with no win no fee claims?

    Some people are quite suspicious about no win, no fee claims. While few things in life are free, there is no catch when it comes a no win, no fee personal injury claim. The system has been designed to ensure everybody has access to the courts and can claim compensation, regardless of how much money they have.

    No upfront legal fees

    In most types of civil court proceedings, you are expected to pay for your own solicitor. While you can often recover these costs if you win a case, with a no win, no fee personal injury claim, you won’t have to pay solicitor anything if your case is lost. This is because the solicitor will usually take out insurance to cover any costs incase the claim is lost. If the claim is successful, your solicitor may take a fee out of the compensation you are awarded, but this is limited to 25% at the most.

    100% compensation

    Since April 2013, most injury solicitors no longer offer a 100% compensation clause for any claims they take on. This is because of a change to the law governing no win no fee claims. Injury lawyers can no longer claim their success fee from the losing side, so it is now taken from any compensation which is awarded, up to a maximum of 25%.

    Court costs

    In some rare incidences, you may be eligible to pay court costs if you lose the case. However, this rarely happens. Your injury lawyer will not advise you to proceed if he or she isn’t confident that the case will be successful. After all, if you lose your claim for damages, the solicitor won’t be paid, and nobody likes to work for nothing.

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