Did you know we still offer 100%?
Many personal injury lawyers and claims companies are thinking of as many ways as possible to entice you to use their services. There are some firms out there who will give you money up front as an incentive to make your claim with them.
But here are some reasons as to why this isn’t always as attractive as it might sound…
What if you lose the claim?
Let’s look at the obvious one here – as far as I’m aware, companies that offer these sorts of things aren’t just giving you money for free. The legal fees a law firm can recover are very small nowadays, so from our experience it’s not a gift, but an upfront ‘loan’ of sorts. The money they give you will be deducted from your final payout if the claim wins.
So if the claim loses, it’s highly likely they’ll want that money back. So ask yourself the simple question – what’s the point if you will need to keep that money and not spend it in case you end up needing to pay it back anyway? I’m sure you wouldn’t want to spend it all and then end up facing a massive bill you can’t pay because the claim hasn’t won.
If you don’t pay it, they could take enforcement action against you – County Court Judgments, a mark on your credit score, etc; it’s all potentially dangerous.
Are they offering 100%?
Most law firms don’t actually offer you 100% compensation anymore because of legal fee reforms from last year. For most claims, we do – so you need to ask yourself the big question as to whether you want a little money upfront now, or more money later on.
If they give you £1,000.00 upfront and your claim is worth £5,000.00, they’ll be taking £1,250.00 from you as their deduction if it’s set at 25% – leaving you with just £2,750.00 at the end of the claim when you take all the deductions off including the upfront payment.
With us, you’d end up with £5,000.00 at the end of the claim – it’s a no brainer!
What if your claim is worth less than what they gave you upfront?
What if they gave you £2,000.00 upfront but your claim only settled for £1,000.00? You could end up in a position where you owe them money at the end of the claim – and if you’ve spent it all, you’re in the same boat potentially that you could be in if the claim loses in many ways.
And if they want to take 25% from your payout as well, that’s more money to lose!
Do cash incentives affect the service?
You could argue that they do because they’re working whilst in debt when it comes to their budget. Remember that the cash incentive is often an easy hook to get people claiming with them, so service may not be a top priority. A poor service is a number one cause of under settling claims.
