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Consultation over ‘no win, no fee’ agreements launched

The Scottish Parliament passed a bill earlier this year aiming to increase access to justice.

A consultation has been launched on the regulation of “no win, no fee” agreements.

A proposed bill was published which aims to safeguard the interests of people considering civil legal action.

The Scottish Government is seeking the views of service providers and prospective litigants on the matter.

“Success fees” are charged by a solicitor or claims management company for acting for an individual in civil cases, often known as “no-win, no-fee” cases.

No-win, no-fee agreements can see someone pay up to a third of their compensation award to a solicitor or a claims management company Association of British Insurers

The Bill suggests these agreements must conform to certain standards and that ministers should have a power to stipulate what the agreements must contain.

The legislation also includes provisions to make the costs of court action more predictable, increase the funding options for pursuers of civil actions and introduces a greater level of equality to the funding relationship between pursuers and defenders in personal injury actions.

Alastair Ross, of the Association of British Insurers, said: “We welcome efforts to regulate no-win, no-fee agreements which can currently see someone pay up to a third of their compensation award to a solicitor or a claims management company.

“That’s money intended for an injured person, not their agent who is already being well paid for their work, and we’ll be contributing to this consultation.”

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