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Anon at 11:18 - utter tripe, fixed costs alone are not sufficient at all, especially when you take into account overheads. Unless of course you employ fee earners on minimum wage.... fancy a job on those terms? Thought not.

In low value claims many clients are just interested in cash cash cash, and an insurer throwing a couple of thou (and saying those nasty lawyers wont be taking 25% of course) is going to be tempting to the average layman on the street no matter how good the service.