The Problem of No win No Fee Compensation People are often confused by what the term 'No Win No Fee' actually means.
And to be fair, they have a right to be.
The industry of claiming compensation has become extremely vast, with what seems like thousands of companies all telling you that you can get your hands on compensation for your injuries, without taking a hit in the pocket as a consequence.
Many companies offer claimants a 'no win no fee compensation' service.
It is not unusual to see the phrase placed within their adverts that you commonly see on television, radio and in newspapers and magazines.
Unfortunately, not all of these are entirely honest about their processes and the result is a lack of continuity between companies who say that you won't be charged when you make a claim with them.
No Win No Fee Compensation - What is it? No win no fee agreements, otherwise known as 'Conditional Fee Agreements', were introduced in the late 1990's and became more frequently used in the early 2000's.
This was when the government abolished legal aid for those wishing to claim compensation for their personal injuries.
Genuine no win no fee law firms will help you with the process of making a compensation claim if you have had an accident where there is liability from a third party.
They will do so completely free of charge so, as stated in the term, you really will pay nothing for making a claim.
If you win your compensation claim, your solicitor will charge the losing side their legal fee.
This is separate to any compensation you are awarded and hence why most will tell you that you receive 100% of your compensation by using their services.
However, if your claim is not successful, your solicitor will not charge you any costs.
These are instead met by the After the Event insurance policy that they take out prior to any formal legal proceedings.
No win no fee specifically means that if the case isn't won, the solicitor is not entitled to claim a legal fee against either party.
No Win No Fee Compensation and the UK 'Claims Culture' The introduction of no win no fee agreements led to an increased effort of advertising from law firms who dealt with personal injury claims.
This in turn resulted in increased media interest of success stories of people who had gone on to use the system to secure themselves a compensation payout after being injured at work, on the road or elsewhere.
Unfortunately, this increased media coverage turned began to shown in a negative light by some, with people stating that Britain is turning into a 'claims culture' similar to that of America.
What the sceptics need to realise here is the stark difference between a society of people who are making compensation claims for the very smallest of injuries, and the increased awareness of their rights after being injured unnecessarily.
As well as this, with a little bit of research these people would realise that the numbers of claims have risen very little over the last decade, suggesting that the supposed 'claims culture' is in fact no more than increased reporting of the issue within the media.