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Hello my name is ***** ***** I will help you with this.
The law changed regarding no win no fee, or Conditional Fee Arrangements are they are called (CFA)
It used to be that there was a success fee that used to be recovered from the other side if you won
The rules changed and this meant that success fees are no longer recoverable from the other side.
Clearly there is a risk taking something on a CFA, because if you lose the Solicitor will get nothing
There is always a risk taking something on no win no fee and they are entitled to a success fee
As I was saying, the law changed and now this means they are entitled to 25% of your damages.
The other side no longer are permitted to pay the success fee
Therefore the 25% is quite normal.
As for the insurance, this is to cover the Defendants costs in the event that you lose
This is because the Court rules say that the losing party pays the other sides costs
So you are taking out this insurance to cover yourself so you are free of any costs if you lose
Of course the other option is to fund litigation yourself, either from your own funds or by taking out a loan.
You then wont have to pay the 25% success fee, but you would risk costs if you lost
So whilst on first glance it does seem like they are taking 35% but due to a change in the law, this is permitted
I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest
Can I clarify anything for you about this today please?
Thank you for your clarification . I now feel able to sign the documents when they arrive .