What is no win no fee?

The term �no win no fee� is one that gets banded around on television and the Internet, and it�s one that has become ingrained in our lexicon as a result. But what exactly does it mean?

No win no fee claims, otherwise known as Conditional Fee Arrangements (CFAs), mean that should your claim be unsuccessful, you won�t have to pay your solicitor a fee. Although you could be liable to pay the other side�s costs in the event of an unsuccessful claim, the solicitor will be able to put �After Event� insurance in place to cover this.

No win no fee came to be in 1995 to replace the government�s Legal Aid system, which was to ensure everyone was entitled to a fair hearing in court, even if they couldn�t afford legal costs. Legal Aid is no longer in place, but those who have suffered an accident that wasn�t their fault can still make a compensation claim even if their financial circumstances are limited. There are no restrictions as to the type of injury you can claim for, so everything from work accident claims to car crash claims are applicable.

The shift away from Legal Aid has also meant that solicitors get to work much closer with clients. In the previous system, those applying for Legal Aid were �means-tested� whereas now, it�s at the discretion of the solicitors whether a person is suitable for a no win no fee claim.

The term no win no fee can be a little misleading, in that it suggests that if you are successful in your claim, you will be liable to pay out some of the compensation. However, many solicitors won�t demand a fee and will recover their costs from the other party. This means that claimants will receive 100% of the compensation, free from any deductions whatsoever.