New Regulations "no-win, no-fee" agreements
From the last month there are new regulations which estabilish the power of the Lord Chancellor in the Coroners and Justice Bill. Due to this new rules the customers of claims service have to be aware of the costs before putting their claims forward.
The Justice Secretary, Jack Straw, said:
‘Unregulated contingency fee arrangements expose claimants to unfair terms and conditions being imposed by those representing them, which could lead to huge slices being taken out of their damages. These arrangements – unlike, for example, conditional fee agreements – have until now been without statutory regulation because of a longstanding legal anomaly. The measures announced by the government today seek to redress this, offering proper regulation to protect the interests of consumers.’
Summing up, claim consultants are supposed to provide the full information about the estimated percentage of damages that are likely to be recovered in the claim procedures. The customer of the service should have the clear information about the total costs and about alternative methods of funding. Furthermore, all the deductions from the claiment's award should be clarify immidiately.
Source: http://www.claimsregulation.gov.uk; New measures to protect claimants from unregulated 'no-win, no-fee' agreements , 24.08.2009