No win, no fee – what does it mean and what’s the catch?

No win, No fee, what's the catch

No win, no fee

No win, no fee; you’ll see it everywhere as it’s the most common way of charging for a claims management service.  Is it as simple as it sounds and is there a catch?  Read on to find out!

So what does it actually mean here?

Actually – what it says.  If we don’t win you money back from the companies that sold you PPI (or whichever company is responsible), we won’t charge you a fee.  So, if:

  • It turns out you didn’t have PPI or,
  • You weren’t mis-sold the PPI you did have or,
  • The company refuses to pay and the Financial Ombudsman Service (FOS) agrees with them…

You won’t get any money back and you will have nothing to pay to us.

Are there any other circumstances where I may need to pay you?

Yes.  If we find you did not have PPI or your claim is not successful there is nothing to pay.  There is also no fee for claims cancelled during the 14 days cooling-off period.

If you cancel outside the cooling-off period, we may charge you a cancellation charge based on the amount of work we have done at the time of the cancellation at £120 per hour and we cap this at £180.

However, if you let us continue with your claim until the end, you would never have to pay any cancellation charges.

Anything else I need to be aware of?

Yes – one more very important thing.  If you have arrears on the relevant debt, the lender may use some or all of your compensation to pay off some of the arrears.  So you’ll still get the compensation, but you won’t get it as cash or a cheque you can use.

“Arrears” means an outstanding debt which you are overdue on paying – it doesn’t mean just owing something on your loan, credit card etc – that’s normal.  You’ll know if you have arrears as your lender will have contacted you to try collect the arrears.

In this situation, you would still owe us our normal fee because we’ve done the work and won you compensation. Clearly you will need to find that money from somewhere. This is why it’s important you let us know if you have any arrears up front. If you do, we’ll remind you of this point so that you can decide whether you still want to go ahead.