Many people in the UK want to claim compensation for financial mistakes, unfair charges, or medical claims. Whether it is for mis-sold financial products, car finance overpayments, or banking fees, the question is whether to do it yourself or hire a lawyer or claims company.

Some people believe legal experts make the process easier, while others argue that you can handle it yourself and keep all of your compensation. Martin Lewis, the founder of MoneySavingExpert, insists that most claims can be made without a lawyer or claims company, saving you money in the process.

How Much Do Claims Companies Charge?

Claims management companies often charge between 20% and 30% of your total compensation. This means if you win £5,000 in a claim, a company taking a 30% fee would keep £1,500, leaving you with only £3,500.

For example, if someone overpaid on car finance by £8,000 (something very topical at the moment) and used a claims firm that charged 25%, they would lose £2,000 to fees. If they made the claim themselves, they would receive the full amount.

The Benefits of Making a Claim Yourself

One of the biggest advantages of handling your own claim is that you keep 100% of the money. There are free resources online, including government websites and consumer rights organisations, that provide guidance on making claims.

Another benefit is that you have full control over the process. You can communicate directly with the company or financial institution, making sure everything is done properly. Some people also feel more secure handling their own financial information rather than giving it to a claims company.

Many organisations make it easy to submit claims without a lawyer. Banks, financial institutions, and government bodies often have online claim forms and helplines to assist you.

The Downsides of Doing a Claim Yourself

“One of the biggest challenges of making a claim yourself is the paperwork,” explains Gavin Cooper, founder of Claims Bible. “Some claims involve detailed forms, evidence gathering, and legal terms that can be confusing. If you make mistakes, your claim might be severely delayed or rejected.

“Time is another issue. Some claims take weeks or months to process, and you may need to follow up regularly. If you have a busy schedule or find legal and financial matters stressful, you might prefer a professional to handle it.”

“In complex cases,” he continues, “such as disputes with landlords or large financial claims, a lawyer or claims expert may have a better understanding of legal arguments and loopholes. This can sometimes improve your chances of success.”

When Is a Lawyer or Claims Company Worth It?

While many claims can be handled without legal help, there are times when professional support is useful. If your claim is very large, complicated, or has been rejected before, a lawyer might help you present a stronger case.

For example, if a landlord refuses to return a large deposit and ignores your requests, a lawyer might be needed to take legal action. Similarly, if a bank refuses to refund unfair fees despite clear evidence, a financial claims expert could strengthen your case.

In cases where stress or lack of time is a major concern, using a claims company might be worth it, even if they take a percentage of your compensation.

The Best Approach for UK Consumers

According to a 2023 survey, around 70% of people who submitted claims themselves were successful. This shows that with the right information, most claims can be won without paying high fees to a claims company.

If you decide to do it yourself, MoneySavingExpert, Citizens Advice, and government websites provide step-by-step guides on different types of claims. If the process becomes too difficult, you can always seek legal advice later.

Conclusion

For most compensation claims, you do not need a lawyer or claims company. Doing it yourself can save you money, and many people succeed using free resources. However, if a claim is complicated, time-consuming, or has already been rejected, professional help might be worth considering. Weighing the costs and benefits is key to making the right decision.