No Win No Fee Accident Claims have been around for centuries and there has, in the past, been some controversy surrounding them. Nowadays, that controversy is long buried and the No Win No Fee structure is one that’s advantageous to both the client and the solicitor.
Previously, a No Win No Fee arrangement would be entered into and it meant exactly that. If the lawyer pursuing the No Win No Fee Injury Claim didn’t succeed in the case then the client would not have to pay them anything. However, if the lawyer won, then not only did the client have to pay the standard fees, but in most cases they would also have to pay a ‘success fee’ to the lawyer, which is where the controversy arose. Although it meant that anybody could pursue a lawsuit, regardless of their financial situation, it also meant that people would see any compensation they received dramatically reduced as they then had to pay the lawyer.
This all changed in 2000, when the Access to Justice Act 1999 allowed success fees to be recovered from the losing party. With the standard lawyers fees also able to be recovered from the losing party, there now exists a ‘No Win No Fee, Win No Fee’ agreement. The lawyer agrees not to charge the client if they don’t win, but if they do win it is the losing party that must pay all of the lawyer’s fees. This means that victims can keep 100% of their compensation and has removed the controversy that previously existed in the No Win No Fee field.
So, what does No Win No Fee really mean? Well, it means that whether you win or lose you don’t pay a penny.
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