Conditional Fee Agreements - What Do They Mean To You? 21/11/07
Conditional Fee Agreements were introduced when the right to receive legal aid was removed from personal injury claims. Realising that the removal may cause uproar with the public the Government was keen to introduce some form of protection that would allow accident victims to make a personal injury claim without having to spend thousands of pounds to do so. The Conditional Fee Agreement was the result.
No Win No Fee Agreements?
Conditional Fee Agreements (CFA) are often referred to as "No Win No Fee Agreements". This is not their correct name. A CFA is a legal document that allows you to make a personal injury claim on the basis that you do not have to pay legal fees as the claim continues, but that you are expected to pay them when the claim finishes. However, what happens at the end of the claim if it is successful is that the solicitor is entitled to recover his charges/costs from the other person's insurance company as well as claiming your compensation. If you lose the claim the CFA being in place means you do not have to pay any costs (that is the No Win No Fee part).
Why Should I Sign One?
The CFA is a long and ultimately dull document to read, but without it a solicitor cannot recover their costs from the other side as there will be no legal entitlement to do so, and if they can't be paid for their work they are unlikely to take a claim on. Hundreds, probably even thousands, of Conditional Fee Agreements are signed every day without any problems. Whilst it would be preferable for the agreement to be shortened considerably, ultimately it is just one of those documents that is needed in today's personal injury claims world.
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