Fixed fees vs Billed fees – Why the choice is clear
One of the main concerns that our clients often have is how much the advice and services that we offer them will cost. In fact, it is one of the reasons many people avoid seeing a solicitor or lawyer in the first place – they fear that the costs may spiral out of control, leaving them seriously out of pocket.
Fixed fees take away the worry when it comes to employing a solicitor.
How do Standard Billed Legal fees work?
It is important to be aware that your solicitor will charge you for every minute of work they do for you. This means every phone call, every letter, every email, every minute of research, every meeting and all court time will be charged for at an often very expensive hourly rates. It adds up very quickly and it can be hard for you to dispute these charges if you think that fees are excessive.
You can see that there is very little incentive for your solicitor to work quickly on your behalf with an hourly billed system. Additionally some law firms will use their junior legal team to complete the basic parts of your case and yet they still charge partner rates.
The Law Society state quite clearly that your solicitor must keep you informed about the costs associated with the services they are providing. They should also provide you with a clearly detailed bill at the end so you can see how the fees have been calculated.
You may also be expected to pay an upfront fee that could run into the thousands and then you may still have to pay more at the end.
How are fixed fees different?
- A fixed fee is not the same as an upfront quote, which could change at any time.
- Fixed fees mean that the scope of the work is agreed and paid for in advance and the full costs set in stone. No additions and no extras to pay at any time.
- All phone calls, meetings, court time and letter writing is carried out as part of your fixed fee.
- You pay for your legal representative and not for a junior at higher rates.
- You get what you expect with no surprises.
Why would I choose fixed fees?
- You know in advance how much the legal work will cost and can make an informed choice.
- You will know if the costs are going to outweigh the financial benefit for you.
- The stress of taking legal action is lessened.
- You will have no further costs once the work is complete.
- Both you and your legal team know exactly what is required in terms of the work and the payment.
- You will find that your legal team will work harder and faster to resolve your case more quickly.