No Win No Fee? Does anyone know what it actually means?

Question

There's a new piece of legislation going through called the 2006 Compensation Act which is looking to regulate claims companies which have increased the number of false claims through using phrases like No Win No Fee. Just wondering if everyone understands the phrase.

I was referring more to Personal Injury Claims and how legal expenses insurance affects the arrangement with you and the solicitor.

Answer 1

Ambulance chasers – firms which pursue the victims of accidents and often persuaded them to instruct them when they were at their most vulnerable will have to be regulated under the Compensation Act 2006, with effect from 1 April 2007. They will be subject to prosecution should they breach the provisions of the Act. All too often accident victims who become involved in such cases are often totally unaware of the financial obligations they are taking on. They believe they have nothing to lose financially by initiating some types of compensation claim. This is often not true. They may well not be feeling well enough to make properly informed decisions when approached. Often people who bring personal injury claims through a claims management company are actually committing themselves to a credit agreement. They are, in fact, taking out a loan to purchase insurance against their case failing. This loan is repayable regardless of whether their case is successful and they receive compensation.
A number of practices within the industry will be banned. Cold calling including approaching people in hospital waiting rooms, on the street, or calling without invitation at their homes will be illegal. High-pressure selling, advertising within hospitals or other medical establishments without permission and failing to provide full information which may include the selling of credit agreements will result in prosecution. It is hoped that the so-called "ambulance chasers" within the industry will be eliminated as a consequence.

Answer 2

No win no fee is abit misleading. The 'no win no fee' idea is part of what are usually called CFA's ( Conditional fee arrangements) Lawyers can enter into them with clients if they so wish, but what it usually amounts to is 'no win lesser fee', where part of the lawyers' costs will still have to be paid. What you will often find in the small print is 'other costs may be payable' which are basically any costs the lawyers have incurred in acting in the case. At the end of the day, the lawyer never goes unpaid, at worst they will break even.

Answer 3

if they take on a case then you have to pay insurance money to protect them if they lose.as these firms only take on concrete cases where they cannot lose their fee comes out of your compensation.if you are awarded 10,000 they take 2,000 so they always go for a high figure.it enables the small man to take on big companies with minimal layout which in effect is noyt a bad thing.

Answer 4

It should mean if they don't win your case then they don't get paid but the big hit often comes when they DO!

Answer 5

it just means if whatever your doing isn't successful u don't pay any money out. i.e i work in an estate agents and we use no win no fee, meaning if we don't manage to sell your property, you don't have to pay us any fees.