Did you know that the days of 100% compensation are somewhat a thing of the past due to government legal reforms from April 2013?
Whilst we personally still offer agreements where people are not at a loss in real terms for some cases, as well as being able to save our clients thousands of pounds by not charging the ‘standard’ amounts that many law firms charge, the concern of upfront costs is of course a huge issue.
But what if I was to tell you that you don’t have to pay upfront costs or claiming?
Why has this happened?
In a nutshell, the reforms mean that you can no longer recover a Success Fee or the cost of After The Event insurance from your opponent if the claim wins. On top of that the amount lawyers can recover in fixed fees was slashed to an insanely low amount, meaning it’s virtually impossible for the law firm to take the hit in light of the changes.
The Success Fee is a percentage of your lawyer’s costs that should only be recoverable if the case is a winner. This can be charged to you but is capped at 25% – so anyone who wants to take more from you is likely charging you for additional fees.
Most firms take the standard 25% and many will take additional percentages because of the low fixed fees issue – but some costs are demanded upfront which puts a financial constraint on innocent accident victims, reduces access to justice, and in theory ruins the idea of the No Win, No Fee.
So what upfront costs can I face?
In an agreement between you and a solicitor they can charge you, in theory, whatever the heck they like. If you agree to it, then you may need to pay it. But to give you the standard ones that many law firms now charge:
- The cost of the After The Event insurance premium which could be anywhere between a few hundred pounds to thousands of pounds
- Administration or set up costs
- Costs for the involvement of middlemen claims management companies or accident advice services due to the referral fee ban from last year
- Disbursement costs – which could be medical reports, treatment costs, or court fees as examples
It can vary between law firms really – which is why it’s important to ask about these things before you enter in to an agreement.
So how do I avoid upfront charges?
Well I can just say, rather bluntly, come to us – because we don’t have upfront charges for our No Win, No Fee cases. We don’t take out the insurance for most claims but you still have the cover as we will personally cover you instead. So you have the indemnity without the premium.
But on a general side note, go to a law firm direct to avoid middlemen claims companies taking a slice or charging you upfront for one thing, and instruct a firm who will be prepared to pay out disbursements on your behalf. Remember though – don’t just go with a firm who is not charging you insurance because they’re not taking it out as you may end up having to pay fees later on down the line. Our system of personally indemnifying you protects you from this, so bear that in mind.
But either way we don’t believe you ever should have to pay anything upfront for most cases so unless there is a specific reason, such as you are paying privately for a case, or there is some kind of issue, get a lawyer without any upfront costs.
