How our fee works for non-litigious claims
Legal UK Services comply with the Fee Cap rules and regulations of the Financial Conduct Authority (FCA), which protects consumers from excessive fees for non-litigious claims.
The new rules limit the fees that can be charged for non-litigious claims. These rules apply to claims where you are awarded monetary compensation from a financial services firm, either directly from the firm, through the Financial Ombudsman Service, or from the Financial Services Compensation Scheme.
Under these new rules, the maximum fee that we can charge you depends on how much compensation you receive. The fee is calculated as a percentage of your compensation, and it varies according to different bands of compensation amounts. The table below shows the different bands and the maximum fees that apply:
|Redress awarded for a claim(£)
|The maximum exchange rate of charge
|THe maximum total charge(£)
|50,000 or above
The maximum fee amount is the lower of the maximum fee percentage or the maximum fee amount for each band.
Important: The fee cap does not include VAT, which is an additional tax that you will have to pay on top of the fee shown above. The current standard rate of VAT is 20%.
This means that if your compensation win is £1,000, the fee cap is 30% of £1,000, which is £300. However, this does not include VAT. Legal UK Services is VAT registered so we will charge you an extra 20% of £300, which is £60, as VAT. Therefore, the total fee that you will pay to us is £360 (£300 plus £60).
How our fee works for litigious claims
If you have a litigious claim, which means a claim that involves or may involve taking your case to Court, we will charge you based on a percentage of the damages recovered by you in a settlement or court judgment. This percentage is called the Damages Based Agreement (DBA) Payment. The DBA Payment includes our fees, Court fees, and the fees of any barrister we instruct on your behalf.
Our fees are only payable if your claim is successful, which means that you receive some money from the lender as a result of your claim. If your claim is unsuccessful, you do not have to pay us anything for the work we have done on your claim.
The percentage of the DBA Payment we have agreed with you is 48% (40% plus VAT). This means that if you recover £10,000 in damages, you will pay us £4,800 inclusive of VAT
In addition to the DBA Payment, you may also have to pay some expenses, such as court fees, expert fees, or witness expenses.These expenses may be funded by a third-party litigation funder during the proceedings, and you will only have to repay them if your claim is successful. We will also try to recover these expenses from the lender as part of your claim.
You may also have to pay an insurance premium for an After The Event (ATE) insurance policy, which covers the risk of having to pay the lender's costs if your claim is unsuccessful. The ATE premium is also only payable if your claim is successful, and it will be deducted from your recovered damages. The ATE premium depends on the value of your claim. By way of example, if the settlement amount is £10,000 gross, the ATEI is currently £166.88 , (including Insurance Premium Tax). ATEI costs can change.
Here is an example of how our fee works for a litigious claim:
Your claim settles for £10,000 gross.
You will receive £4,754.92 broken down as follows:
£10,000 gross settlement figure
Less £455 Court Issue Fee (which has been paid on your behalf by us to get your claim issued)
£80 Fixed Costs
Balance £9,465 on which the DBA payment is calculated at £4543.20.
Less £166.88 ATEI
Due to you £4754.92