No Win No Fee

The term "No Win, No Fee" sounds too good to be true, but is it all that it seems?

How does "No win no fee" work?

The legal term for"‘No Win, No Fee" is a Conditional Fee Arrangement (CFA). This was introduced in 1998 as an alternative to Legal Aid.

If your case is taken on by a solicitors firm under a CFA, they take it on with the risk that they will not get paid if the case isn’t won. This does not sound like a sound business model for the firm, so there must be some sort of catch, right?

Well the reality for the solicitor is that the legal system has evolved and this is how he/she must now work in today’s legal world.

The real problem if your case loses, is if you have to pay the legal fees of your opponent.

Luckily this can be insured against. Your own solicitor should be able to offer an insurance against losing your claim. The premium for this should be recovered at the end of a successful claim if you win and in most cases the solicitor should not charge you for the premium if the case lost.

Top tip

Do not sign up with any solicitor who wishes to take a percentage of your compensation. If they win the case the solicitors fees are paid by the other side, so any legal firm taking a cut of the commission is asking to be paid twice !

No Win No Fee

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