No Win No Fee Solicitors Bermondsey
So what exactly is a No Win No Fee Solicitor? If fact “No Win No Fee” should mean exactly that “No Win No Fee”. In the unlikely event that your claim is unsuccessful, you should not be charged solicitors fees.
You should ensure that in the event your Bermondsey solicitor does indeed win with your claim for compensation, that you receive the agreed amount with your solicitor.
You should be aware that in some cases a small percentage of the money that you are due to receive is deducted for a “success fee” which is usually discussed and agreed at the commencement of your case. Generally a solicitor will reclaim their base costs via the negligent party involved in your case.
No win no fee solicitors in Bermondsey specialise in a wide number of different sector claims ranging from personal injury compensation claims to mis-sold ppi.
It has become an increasing problem whereby the Legal Ombudsman has begun to see a number of cases whereby the fundamental promise on No Win No Fee is being ignored. The very backbone of the marketing of both CFAs and DBAs – whereby the consumer will not have to pay for losing cases is being increasingly broken by companies in the industry.
They point to cases that show examples of people who have entered into a No Win No Fee agreement in good faith, only to have been saddled with significant and unexpected costs when their case ends unsuccessfully. We hear on a regular and increasing basis, stories of claimants who win their case and end up out of pocket.
The No Win No Fee model has not been without its problems. It has played its part in fostering an unwelcome culture of ‘ambulance chasing’ and fraudulent claims. This has had the affect of inadvertently driving up insurance premiums for us all, which was never the purpose behind the No Win No Fee model. The UK Government has become so concerned about this that it has made moves to rein in the whole personal injury industry by banning referral fees. The regulators have been warning about the marketing of such agreements and their strong concerns relating to that the phrase ‘no win, no fee’ which they say is “potentially misleading”
The financial risks of going to court for both parties in a No Win No Fee case can be immense. When one takes into consideration the Lawyer’s fees for both parties together with court fees, insurance and perhaps there is a success fee involved, then the total amounts for both sides soon adds up.
Bermondsey Litigation Lawyers always need to find creative ways of making their affordable and accessible and for clients whilst ensuring all of these costs are met. For the consumer the attractions are clear as they can take their case to court with no upfront fees payable and therefore no apparent financial risk. On the flip side, there is a potential financial risk to the lawyer, should they lose the case. Losing a case means that the Lawyer is left responsible for the other side’s costs as well as their own.
It is therefore of paramount importance that the Bermondsey Lawyers are very careful in which cases they agree to take on. Even an occasional loss can swallow up by the success fees generated by a number of winning cases. Should a Lawyer be under any type of financial pressure, due to perhaps a run of bad luck by making bad calls on No Win No Fee agreements, this can seriously threaten their whole business operation.
As a result a number of cases have been highlighted where, faced with such circumstances the Lawyers try to pass on any risk onto their client or they simply try to go back on the terms of their No Win No Fee Agreement.