1. What Is a No Win No Fee Agreement?
A no win no fee agreement, also known as a Conditional Fee Agreement (CFA), allows you to pursue legal action without paying upfront legal fees. You only pay if you win the case, usually as a percentage of your compensation.
2. Are There Hidden Costs in No Win No Fee Claims?
While no win no fee agreements reduce financial risk, some costs may still apply. Hidden fees can arise from:
- Success Fees – A percentage of your compensation deducted as payment for the solicitor.
- Disbursements – Costs for medical reports, court fees, and expert witnesses.
- After the Event (ATE) Insurance – A policy to cover legal costs if you lose (sometimes deducted from winnings).
- Shortfall Fees – If the solicitor’s costs exceed what the losing party pays.
3. What Happens If You Lose the Case?
If your claim is unsuccessful:
- You won’t pay your solicitor’s fees, but
- You may still be liable for disbursements unless covered by ATE insurance.
4. How to Avoid Hidden Costs in No Win No Fee Agreements
- Ask for a Fee Breakdown – Request a clear cost explanation before signing.
- Check for Disbursement Coverage – Some solicitors cover these costs, while others don’t.
- Confirm the Success Fee Cap – In the UK, success fees are capped at 25% of compensation for personal injury claims.
- Understand ATE Insurance Terms – Ensure it covers all potential costs if you lose.
5. When to Seek Legal Advice on No Win No Fee Costs
If a solicitor isn’t transparent about fees, get a second opinion to avoid unexpected charges.
Frequently Asked Questions
Are all no win no fee agreements truly free if I lose?
Not always. You may still owe disbursements unless covered by insurance.
What percentage do solicitors take if I win?
Most charge 20-25% of the final settlement.
Can I negotiate no win no fee costs?
Yes, you can discuss fees and request a detailed agreement.
What if my compensation is lower than expected?
Your solicitor’s success fee may still apply, but legal protections ensure you receive a fair amount.
Do I need to pay court fees in a no win no fee case?
Usually, court fees are covered upfront by the solicitor but may be deducted from compensation if you win.