What you need to know before joining a group claim.
Confused about what no-win, no-fee really means? In this handy guide, we break down the legal jargon so you can see how group litigation funding works, and decide if you want to join a claim.
Why no-win, no-fee funding matters
Joining a group claim is a powerful way to hold big companies accountable – but legal cases can be expensive.
No win, no fee agreements are designed to remove financial barriers so you can pursue justice without paying upfront legal costs.
At Join the Claim, we believe in transparency, so here’s a quick summary:
When you use Join the Claim, all costs are explained clearly before you sign up. Not sure about something? Just ask us, we’re happy to help.
A no win, no fee agreement lets you join a claim without paying anything upfront. If your case is successful, your law firm deducts a pre-agreed amount from your compensation. If the case is unsuccessful, you don’t pay your solicitor’s fees.
However, some costs may still apply, such as:
The good news is that most firms arrange ATE insurance to protect you from these risks, which means you’re unlikely to pay anything if the case doesn’t succeed. Always check that this cover is in place before you sign, so you can join the claim with confidence.
The two main types of no win, no fee agreements used in group litigation are Conditional Fee Agreements (CFAs) and Damages-Based Agreements (DBAs). Both are designed to reduce financial risk for claimants and make legal action more accessible.
A Conditional Fee Agreement (CFA) is a popular no-win, no-fee funding method in group litigation. When claimants sign up to a CFA, they don’t have to pay anything upfront. The legal team that represents the claimants will only earn fees if they win the case. If the case is won or settled, the law firm charges a “success fee” in addition to their standard costs.
Often, the law firm combines the success fee and standard costs into one percentage. This means you have a clear idea about how much of your compensation will go toward legal fees, ensuring you’re never surprised by unexpected charges.
A Damages-Based Agreement (DBA) is another no-win, no-fee funding option for group litigation (although it’s not as popular as a CFA).
With a DBA, the law firm’s fees are capped at a pre-agreed percentage of the compensation awarded, meaning you’ll only ever pay a set portion of your damages, up to a maximum of 50% by law. There is no separate success fee with a DBA.
In group actions, especially those run under no-win, no-fee agreements, claimants only pay legal fees if their case is successful. This makes group litigation accessible. However, it’s important to understand what you’ll pay if you win, as law firms often charge a success fee.
Law firms charge a success fee if a case results in a win or settlement. Although this fee sometimes seems high, it compensates firms for the risk they take by offering services without any upfront payment. The success fee is typically a percentage of the compensation awarded to claimants and can vary depending on the case.
You pay upfront: £0
You pay (success fee): 20%
Compensation awarded: £10,000
Amount you receive: £8,000
You pay upfront: £0
You pay: 0%
Compensation awarded: £0
Amount you receive: £0
Understanding the costs upfront can help you decide whether the potential compensation is worth the fees and time involved.
No-win, no-fee agreements make legal action more accessible – but like any funding option, they have benefits and drawbacks. Before signing up, it’s important to understand both sides so you know exactly what to expect. To help, here’s a quick look at the pros and cons:
You don’t pay to join, and nothing as your claim progresses.
You only pay if the case wins.
Makes legal action affordable.
A portion of your compensation goes to the law firm.
If you cancel mid-way or breach terms, you may owe costs.
Check whether ATE insurance is in place to cover you from any unforeseen costs.
ATE insurance is designed to protect you from financial risk if your claim doesn’t succeed. It’s a policy your law firm usually arranges on your behalf.
Most group claims include ATE cover as part of the no win, no fee arrangement, so you don’t have to arrange it yourself. The cost of the policy is normally only payable if you win and is often included within the agreed success fee, meaning it’s not an additional cost – but always check this is the case before you sign up.
ATE insurance reduces the financial risk of joining a group claim, giving you peace of mind that you won’t face big bills if the case doesn’t go your way.
Before joining a group claim, make sure you understand exactly how your funding agreement works. Asking the right questions now will help you avoid surprises later and ensure you’re comfortable with the terms. Here are some key things to check:
One of the most common questions people ask is: “What will I actually get if the case wins?”
In group litigation, outcomes usually come in the form of compensation – either through a settlement or a court award. This section explains how compensation works and what happens if your case is resolved before trial.
This is the money you may receive if your group litigation claim is successful. Compensation can come in two ways: through a settlement, where the defendant agrees to pay without going to trial, or through damages, which are awarded by the court if the case is won. It’s designed to reimburse you for the harm or loss you’ve experienced – whether that’s financial, emotional, or related to your rights as a consumer or employee. Compensation amounts vary depending on the nature of the claim, how many people are involved, and how badly individuals were affected.
A settlement is when the parties in a legal case agree to resolve the dispute without going to a full trial. In group litigation, settlements are common.
Settlements can be reached at any stage of the legal process. For claimants, this means quicker resolution and guaranteed outcomes - without the uncertainty of a trial.
“Damages” is the legal term for the compensation awarded by a court when a claim is successful. In group litigation, this means the judge has found the defendant legally responsible and has ordered them to pay money to affected claimants.
The amount awarded can vary depending on how serious the impact was and how many people are involved in the claim.
If your claim is successful, your law firm will deduct a pre-agreed success fee from your compensation as part of the no win, no fee agreement. This percentage should always be explained upfront, so you know exactly what to expect.
No win, no fee agreements are a popular way to fund group claims because they reduce financial risk and make it easier to take on big companies. But make sure you understand the terms before you sign.
Still have questions? Read the full SRA guidance on what to expect.
At Join the Claim, we make it easy to find out if there’s a group action you can take part in. Our platform lists current claims in plain English, so you can quickly see what the case is about, who it’s against, and whether you might qualify.
If you’re eligible, you can complete a simple online form and we’ll connect you with one of our trusted legal partners.
It’s a safe, straightforward way to take the first step toward compensation.
Last Updated: 28 July 2025
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