Thousands of people could be paying too much when they go to court to get damages after an injury or accident. The number of people seeking damages in court is likely to soar after a ruling by the Court of Appeal in July which means that accident victims can sue safe in the knowledge that it should cost them nothing – win or lose. If they win they will keep their compensation in full. And if they lose all the costs incurred will be covered by an insurance policy – even the premium for that insurance is covered.
But many organisations which encourage claims are still making hefty charges. They are unregulated. And the growing number of people who go to them could still end up losing much of their compensation through charges for administration, insurance, financing, and expenses.
‘No win no fee’ claims will be one of the topics examined in the new series of Money Box which returns this week. The prize-winning personal finance team who make the programme will be asking what is the real financial risk for those who go to court?
1 September 2001
e-mail Paul Lewis on paul@paullewis.co.uk