No win, no fee solicitors
No Win No Fee is a common term for a personal injury solicitors' scheme actually called conditional fee agreements. The agreement means a solicitor takes on a case on the basis that if the client loses, the solicitor will not get paid.
Sounds good, doesn't it? But beware - it can be not quite as straightforward as it seems.
What no win, no fee seems to be saying is that if you lose, you pay nothing - but what if you win? In that case, you must pay the solicitor's fees and, quite possibly, an additional 'success fee' designed to compensate the solicitor for the risk of not being paid if you lose.
And if you lose your case, your opponent's legal costs will still need to be paid which is where no win, no fee starts to get complicated.
You will need take out insurance to cover your opponent's legal costs if you lose. And sometimes even take out a loan to cover the cost of the insurance premiums.
So be careful - you can be subjected to high-pressure sales tactics by unqualified intermediaries who are introducing you to solicitors' services.
And it can be a very complicated minefield. Sometimes the risks of no win, no fee agreements are not clearly explained by salesmen. You can
find that costs are hidden and unpredictable.
Remember that your final payout depends on what forms you sign. So before signing anything, ask your solicitor:
Will I get all of my compensation?
Can you explain any fees you might charge me clearly and in writing?
Is there an insurance policy for my claim and will the premium be deducted from my settlement cheque?
Why do I need to sign a loan agreement?