No Win No Fee Solicitors: Is There a Catch?
One study suggests that up to 80% of people in the USA who need legal help can’t afford it.
So, if you’re suffering from a personal injury that’s left you out of work with a pile of medical bills to pay, you might wonder how you’ll ever find justice. Thanks to no win no fee solicitors, you can get the compensation you deserve.
Keep reading to discover the pros and cons of No Win No Fee cases.
What Is a No Win No Fee Case?
The official term for a No Win No Fee arrangement is, ”conditional fee agreement”.
You don’t pay any upfront attorney fees when you embark on a No Win No Fee case. You don’t pay your solicitor anything unless you receive compensation for your claim.
As an example, you can enter into a No Win No Fee agreement with a lawyer if you are seriously injured in a car accident and can’t afford legal fees on top of mounting medical bills.
A No Win No Fee agreement allows you to enjoy the services of a top personal injury lawyer and pay nothing unless you win something.
What Happens if You Lose a No Win No Fee Case?
In most cases, you’ll pay about 25% of your settlement to your lawyer for No Win No Fee costs if you win your case. If you lose, you don’t pay anything to your lawyer.
However, the judge can compel you to pay the legal costs of the other party if you lose your case. For this reason, most lawyers won’t engage in No Win No Fee cases unless they have a good chance of victory.
You should take out insurance to protect yourself from these unexpected costs, and most lawyers will insist you do this before they take your case. This type of insurance is called After-The-Event (ATE) insurance.
Are There Any No Win, No Fee Hidden Costs?
All the costs as well as terms and conditions appear in the conditional fee agreement you sign with your lawyer. It’s their responsibility to explain all these fees to you before you commit.
Most disputes regarding CFAs arise as a result of clients:
- Misunderstanding how much the lawyer will deduct when you win
- Not anticipating the deduction of an After-The-Event insurance premium
- Underestimating the amount of the ATE premium
- Being unaware of any barrister or counsel fees
Always make sure you understand all the costs involved in the CFA before you sign it.
How Do No Win No Fee Solicitors Cover Their Costs?
ATE insurance makes provisions for legal fees like preparing court documents and medical reports necessary for your case. In this way, solicitors can continue to help people get justice, without ending up out of pocket.
In many cases, a No Win No Fee solicitor can arrange for an out-of-court settlement, which reduces these costs considerably.
The pros of No Win No Fee cases are easy to understand. In this way, No Win No Fee solicitors allow those who can’t afford expensive litigation to get the compensation they deserve.
Are you interested in other ways to make your life easier? Browse our blog for more information on navigating life’s challenges.