On 1st April 2013, the whole personal injury system was shaken to its core when the government decided that the innocent victims should not be allowed to recover all their legal fees for pursuing a claim from the opponent. Whilst lawyers can still recover most things, we are no longer allowed to recover a success fee, which helps us fund no win, no fee claims, or an After The Event insurance premium, which is insurance to protect the client against costs.
A cap has been placed on lawyers so we cannot charge anymore than 25% of a person’s claim for pain and suffering and past financial losses for the success fee, and most law firms are now charging the full 25%. On top of that, they are asking for payment of the insurance as it’s no longer recoverable from the opponent either. To try and help offset clients being charged, compensation victims do get an extra 10% compensation under the new rules – but they are still at a loss.
According to our research so far, the vast majority of law firms have settled on charging the full 25% and are asking for payment of the insurance. People are losing out. But our boss here at The Injury Lawyers decided to be different – as we have always tried to be!
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