Why are solicitors deducting 25 per cent of compensation?

[cgksheff]

Listen more carefully to the adverts.

 

Most say something on the lines of ' you get to keep 100% of what you deserve '

 

"Claims Direct’s solicitors are experts at obtaining the maximum amount of compensation for your personal injury and, since they work on a no win no fee basis, you are guaranteed to keep 100% of your compensation award."

 

http://www.claimsdirect.co.uk/injury-claims

[geared]

Inflate the legal fee's to cover the cost of not claiming a winning fee.

 

Sounds like the law was pretty poorly written and easy to get around.

[Waldo]

I'd much rather prefer an arrangement whereby my solicitor get's a % chunk of any money I am awarded, rather than them claiming costs from the other party. With that kind of arrangement, I would suspect my solicitor has less vested interest in getting me a good deal, and would be more concerned with how big their own pay-out is.

 

At least if they get a % cut of what I get, they have a vested interest in making sure it's as big a pie as possible, before they take a % cut of it.

[Owlman51]

So claims direct can guarantee you will keep 100% of the compensation... yet other firms say they have to deduct 25%

 

There must be some hidden costs in the 100% deal or how could any solicitor justify taking the 25%?

 

It all seems a bit murky to me. The 100% deal has a 'too good to be true' element to it yet we wouldn't want to give up 25% of compensation if we didn't have to.

 

I'd be interested to hear from someone who has taken up one of these 100% compensation deals to see if their are any hidden nasties...

[Waldo]

Phone up and ask the solicitor who is taking 25%, how other firms can afford to take 0%?

[Owlman51]

My wife will be doing just that!

[Waldo]

Good luck. Let us know how you get on!

[cgksheff]

So claims direct can guarantee you will keep 100% of the compensation... yet other firms say they have to deduct 25%

 

There must be some hidden costs in the 100% deal or how could any solicitor justify taking the 25%?

 

It all seems a bit murky to me. The 100% deal has a 'too good to be true' element to it yet we wouldn't want to give up 25% of compensation if we didn't have to.

 

I'd be interested to hear from someone who has taken up one of these 100% compensation deals to see if their are any hidden nasties...

 

 

It doesn't have to be murky.

It's a free market.

 

Take it or leave it.

[Owlman51]

My wife spoke with solicitors who are charging a 25% deduction and was told it due to a law change where they can't recover there costs anymore.

 

When asked about solicitors who guarantee 100% per cent compensation they said it can depend on the type of insurance you have???

 

You might have to pay for another insurance policy which covers the risks in the claim...

 

So it seems you have a choice - pay for a policy which can guarantee you get the 100% or pay nothing and have 25% deducted by a solicitor.

 

I guess it depends on what the claim is worth???

[L00b]

It all seems a bit murky to me.

Nah, it's easy:

 

Those firms who claim you will keep 100% of your award are running the entire case within £500 or thereabouts. Standard economics mean that, unless you case is a slam dunk/rabbit-in-the-headlights-sure-win, they won't take your claim on.

 

Those firms who ask 25% of your award are running the entire case within more than £500 (£500 + % of award, but 25% may well be negotiable depending on size of potential award). You'd have a stronger chance of having your claim taken on by them.

I guess it depends on what the claim is worth???

That and how likely (easy) it is to succeed.