When you are recovering from an injury, the last thing you need is a difficult decision about who should act for you. Yet that decision matters. The route you choose can affect how much of your compensation you actually keep, the quality of the advice you receive, and how confident you can be that someone with proper expertise is in your corner.

What does a claims company actually do?

A claims management company, or CMC, is a business that helps people pursue compensation in return for a fee. It is important to understand that CMCs are not law firms. They cannot raise court proceedings on your behalf, conduct litigation, or appear in court. In the great majority of cases, once a CMC has signed you up, the legal work is referred out to a solicitor who has agreed to take cases from the CMC on commercial terms.

In other words, you may end up with a solicitor working on your case, but with a claims company sitting in the middle and taking a share of your compensation for the introduction. Going directly to a solicitor may result in higher compensation retention and fewer expenses than if you go to a CMC.

Solicitors: Quality of advice and continuity

When you instruct a solicitor directly, you have a single, regulated professional who is accountable to you from start to finish. They will assess the strength of your claim, gather medical evidence, instruct experts where needed, value your loss properly, and negotiate or litigate as required. Crucially, they can advise you on whether the offer on the table is a good one, or whether you should hold out for more.

"No win, no fee": what does it mean in Scotland?

Both solicitors and claims companies routinely offer arrangements described as "no win, no fee". In Scotland, the way these agreements are structured and capped is set out in legislation.

Under the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 and the regulations made under it, the success fee that can be deducted from your damages in a personal injury case is capped at: 

• 20% of the first £100,000 of damages,
• 10% of damages between £100,000 and £500,000, and
• 2.5% above £500,000.

These caps include VAT and apply whether you are dealing with a solicitor or a claims company.

The key point is to read what you are signing carefully. Ask exactly what percentage will come out of your damages, what happens to outlays/expenses such as medical reports, and what the position is if the case is unsuccessful. A reputable solicitor will explain all this clearly and in writing before you commit to anything.

Different rules, different levels of protection

Claims management companies operating in Scotland are regulated by the Financial Conduct Authority, which sets minimum conduct standards and bans practices such as cold calling and high-pressure selling. Complaints about CMCs are handled by the Financial Ombudsman Service.

Solicitors in Scotland are regulated by the Law Society of Scotland. While conduct standards are similar to those of the FCA, every Scottish solicitor must carry compulsory professional indemnity insurance through the Master Policy, and clients are protected by the Scottish Solicitors’ Guarantee Fund.

A CMC might be best for more straightforward claims, as they can do an initial assessment and referral. However, if your claim is more complex or of higher value you may be best approaching a solicitor directly.

A few things to keep in mind

Whatever route you choose, please bear the following in mind:

• In Scotland, you generally have three years from the date of an accident to bring a personal injury claim. Time can run out faster than you expect, particularly if your injuries are slow to settle.
• Never feel pressured by a cold call, text or social media advert to sign up on the spot. A reputable adviser will give you time to read the paperwork.
• Always ask for the funding arrangement in writing and check who will actually be doing the legal work.
• Keep a record of your injuries, treatment, time off work, and any expenses from the start. It will all be useful evidence later.

Solicitors vs Claims Company at a Glance

	CMC	Solicitor
Legal Advice	No	Yes
Court Representation	No	Yes
Regulated By	Financial Conduct Authority	Law Society of Scotland
Fee Model	Percentage of compensation	Fixed fee or 'no win, no fee'

Where Paris Steele fits in

Personal injury work is highly specialised, and we do not run those cases in-house. What we do is act as a trusted first point of contact for clients across East Lothian. If you come to us after an accident, we will listen, take the time to understand what has happened, and put you in touch with one of the experienced specialist personal injury solicitors we work with.

Paris Steele does get a commission from any fee awarded for referrals, but these are people we know, people we trust, and people who will look after you in the way we would expect for our own clients.

It is a quieter route than the loud advertising of the claims companies, but it is one designed around your interests rather than someone else’s marketing budget.

A short, no-obligation conversation costs nothing and may save you a great deal in the long run. You can find more about our approach on our Accident and Personal Injury page.

Contact us today or call 01620 892138.