Walker Jack Consultants

Potential Pitfalls

Every year in the UK about 2.5 million people will sustain an injury. Some of these individuals will lose their independence or their income as a result of the injury they have sustained. In some cases it will not be their fault; rather the responsibility will lie with another car driver, public authority, employer or individual.

Despite what may be read in the newspapers, there has been no boom in individuals claiming compensation. In fact only around 31 percent of accident victims claim compensation through legal channels. Individuals who have suffered losses due to injuries that they have sustained and which were not their fault should be entitled to compensation. However, at the moment there are many pitfalls into which potential claimants can fall.

Individuals who have suffered an accident are often put under intense pressure by sales people who are not qualified to advise them on legal proceedings. Few consumers are aware of the pitfalls and liabilities that they will be exposed to by agreeing to conditional fee arrangements, otherwise known as no win no fee accident claims. Consumers often believe that these arrangements are genuinely ‘no win no fees’, but in some cases there are hidden costs which the individual will be unaware of until the bill arrives. There is also the problem that some solicitors will refuse to take cases which they feel they are unlikely to win.

Loan financed insurance premiums, can along with other legal costs eat into the no win no fee compensation that an individual receives. In some cases this can even lead to the individual owing money at the end of the proceedings. Individuals wishing to pursue a no win no fee personal injury claim should ensure that he or she deals directly with the solicitor and that the solicitor has not paid another party for the claim. Think carefully before taking out a loan as the claimant is responsible for the interest payments. Ensure that any damages recovered will be intact. Always read the small print carefully before committing to any agreement.

There is currently no system for regulating conditional fee arrangements which means that consumers may not be receiving good advice and information. A voluntary code of practice is still in its infancy.