No Win No Fee: Is It Really Bad For All Of Us?

In January this year, the UK Legal Ombudsman had ordered lawyers to repay more than £1 million in compensation for misleading consumers regarding the No Win No Fee confusion, or the Conditional Fee Arrangement (CFA) used by most lawyers, solicitors and claims handling companies.

According to the Legal Ombudsman, it said that it “begun to see cases where the fundamental promise, which underpins the marketing of these arrangements- that the consumer will not have to pay for losing cases-is being broken.”

Truthfully, no win no fee is something I’d prefer because it enabled me to reclaim refunds from my bank without much trouble. I did not mind paying back 25%. However, most claims handling firms now concentrate on the viability of a client’s success rather than fulfilling their duties to represent any client in court.

The viability of success, coupled with legal intelligence, had resulted into widespread disasters for the insurance industry. Insurance premiums have skyrocketed in rates, deeply affecting younger drivers applying for car and personal injury insurance.

No win no fee can be misleading because in the end, clients will need to pay undisclosed fees. If legal representatives will not make their statements clear to avoid hidden costs or misleading information, then it would be better to banish no win no fee from the legal system once and for all.

Why You Should Claim PPI Refunds Today

Observers estimate that PPI is the UK’s biggest insurance fraud to date. With over more than a million UK customers mis sold the insurance policy, the Financial Ombudsman’s 92% workload is allotted to the infamous financial product. Observers recommend that anybody who discovered they were mis sold PPI make a claim as soon as possible for the following reasons.

1.    Complaints Piling Up

With the economic malaise in the United Kingdom, more complaints are coming in every day. The Financial Ombudsman actually gets 2,000 PPI refund complaints on a daily basis and are hiring an extra 1,000 hands to help resolve the situation. If you don’t make a PPI claim today, you might find it more troublesome in the future.

2.    Compensation Package

Banks have set aside PPI compensation for the entire United Kingdom amounting to £25 billion in total. If this runs out before you make a PPI claim, banks become more stringent with PPI claims due to the lack of resources to recompense the consumer complaint. Banks can even reject your legitimate claim.

3.    PPI Claims Deadline

While UK consumer groups stalled the PPI claim deadline once again, the end of PPI claiming might come a bit earlier than expected. Around 1.3 million customers have reclaimed £17 from the compensation package and if the banks and lenders hit it properly this time, the total of £25 billion might be the last of the PPI compensation recompense.