Contrary to popular belief, the phrase no win no fee does not actually mean that no fees will be required to be paid by you, should you case lose. In fact, over years that have recently passed, the legal ombudsman has requested that more clarity be given to such contractual agreements, helping to avoid the stress that can be incurred by all parties when unexpected payments are due to be made.
So what should you know about no win no fee agreements? Keep reading to understand how such an agreement works, and who can utilise such an agreement. What is No Win No Fee? The most common type of no win no fee agreement is the Conditional Fee Agreement (CFA). Of course, no win no fee is much easier to say, and is consequently preferred by those that offer this agreement, as not only does it simplify the phrase, its basic premise also draws in a lot more custom. Being introduced in 1998, originally, conditional fee agreements were there as a solution to those that could not afford legal representation. Prior to April 2013, legal representors could take what was known as a “success fee” to cover legal costs, and reward them for taking on a case which they would have only recovered costs from in the event that the case fell in favour of their client. However, monies recovered now come in the form of damages, and are taken as a percentage of the compensation won. How Can I Enter a No Win No Fee Agreement? Not just anyone can enter in to a no win no fee agreement, and your solicitor will be able to, first inform you if you have the basis for a claim, and secondly let you know whether they would be prepared to take the risk of assisting you with your case, under such an agreement. A solicitor will only take on your case under a Conditional Fee Agreement, if they have a strong belief that your case will be decided in your favour, this is because they will be sharing the risk of litigation with you. No win no fee agreements are directly marketed services. Such services have built the gap between legal funding and the individual, as funding has moved further away from state provision and towards commercial mechanisms. If you believe you have the basis by which to make a legal claim, it is of paramount importance that you consult a reputable solicitor that will be able to run you through an in-depth consultation service, inform you of your legal options, and let you know what your funding options are. What Happens Next… Conditional Fee Agreements have come under fire in the past for having terms and conditions that are overly complicated. However, in recent years, the legal ombudsman has ruled that the contracts drawn up must follow standardised formats, aiding understanding and reducing the amount of complaints being made after the case has been won or lost. It is the responsibility of your solicitor to point out what fees you will be entitled to pay, and how they will be payable. However, it remains your responsibility to inform your legal representative if you do not understand any terms and conditions set out. Most legal cases will require a certain amount of evidence or work to be carried out, before the case comes to trial. The cost of such assessments and information gathering will commonly be the responsibility of the claimant, but it is always advisable to ensure such responsibilities are outlined at the start of the case. Will I always Win with No Win No Fee? There are no guarantees in litigation, and many solicitors will advise their client to take out what is known as an “After The Event” insurance policy. By setting up an after the event insurance policy, you will be covered for paying the other sides legal costs should the case not fall in your favour. It is not uncommon that substantial premiums will be required to be paid under an after the event insurance policy, and it should be noted that such premium costs cannot be covered from the other side, however the case is decided. How to Find Your Solicitor Whatever legal challenges you may face, it is of paramount importance that you find a solicitor that specialises in the area of law you require assistance with. There are a wide variety of online services that are available to help individuals find the legal representation they require. The Law Society is the representative for solicitors in England and Wales, and allows individuals to narrow down their search for a solicitor by location and even specific accreditation. When deciding on the solicitor to help you with your case, you should ensure that you find out the following: Who will be there to support you with the proceedings of your case should your solicitor become unavailable. If your solicitor has a way for you to track the progress of your case. The best ways in which to contact your solicitor. I.e. telephone, Skype or email.
As well as knowing what to look for, it is also important that you understand what to be wary of. If any of the following apply, it is wise to seek legal advice from elsewhere: Your solicitor is reluctant to place a cap on the amount of money you will be required to pay when you case is closed. Your solicitor asks for money upfront.
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