No win, no fee?????????

abandonded

Watching a PPI claims advertisement on tv, I was confused. The company on the one hand state that you get to keep ALL of your compensation but also say that the deal is NO WIN, NO FEE. Could someone clarify please? :undecided

mjm3346

With injury claims they charge costs (their fee) to the other side, I don't know about PPI though.

unholyangel

At a guess I'd say they add their legal fees on to the claim amount.

sithmaster

abandonded wrote: »

Watching a PPI claims advertisement on tv, I was confused. The company on the one hand state that you get to keep ALL of your compensation but also say that the deal is NO WIN, NO FEE. Could someone clarify please? :undecided

i seen that advert and was thinking the same
a bit confusing

Evilm

I've seen this with Accident claims but not PPI. With accident claims once the matter is settled/awarded the solicitor then sends over a list of the costs and expenses on the matter and the two parties argue over what they agree as acceptable to be paid. A cost draftsman works through and justifies the expenses/time spent. Then these get paid straight to the solicitors.

I suspect with these PPI claims its more like "heres our clients records proving you owe them £X, and heres our claim for £Y for costs. Now pay up!"

somethingcorporate

They charge it to the company they claim from, you get the amount awarded as compensation - they obviously only take on claims they think they have a large chance of winning on.

What is confusing about it?

mjm3346

somethingcorporate wrote: »

They charge it to the company they claim from, you get the amount awarded as compensation - they obviously only take on claims they think they have a large chance of winning on.

What is confusing about it?

I would imagine the op wondered how the company made any money if it is no win/no fee and you keep all the compensation rather than no win/no fee but if they win they deduct a large percentage from your compensation.

As costs should usually be minimal on a PPI claim I cannot see them making money out of this.

InsideInsurance

On a normal PPI claim they would be unable they'd be unable to charge costs as it will fall into the small track (currently under £5k and soon to be under £10k)

These firms typically just send stock letters and so their costs, once they've got your permission to act for you, are absolutely tiny. Either they are fishing an hoping to get some bigger cases where legal fees can be added or alternatively their privacy policy allows them to sell your details to every tom !!!!!! and harry with the right for them to resell it and by the time they've questioned you about all your circumstances etc that is leading to the claim they will have a fairly juicy file that could be sold at least as a warm lead

abandonded

somethingcorporate wrote: »

They charge it to the company they claim from, you get the amount awarded as compensation - they obviously only take on claims they think they have a large chance of winning on.

What is confusing about it?

It is confusing because, if the ad is correct, and remember it is directed at the consumer, then between the lines it implies that that consumer will be liable for fees if they, the advertisers, take on and then lose a case ie, 'no win = no fee' or 'lose = fee payable'.

If they do win then presumably the bank will pay the fees leaving the advertiser in a win win situation.

bod1467

lose = no win, thus no win = no fee, or win = fee.

By your thought train, and using the above (correct) logic, if you WIN then there is a fee. In this case the fee is charged to the other party. if you lose then the company takes the hit (they insure against such events I believe).

abandonded

bod1467 wrote: »

lose = no win, thus no win = no fee, or win = fee.

By your thought train, and using the above (correct) logic, if you WIN then there is a fee. In this case the fee is charged to the other party. if you lose then the company takes the hit (they insure against such events I believe).

I told you I was confused!:D