0151 665 0320If your landlord failed to protect your deposit, you may be entitled to compensation of up to three times its value. But before you can claim, you face a choice that many tenants find confusing: should you use a claims company or instruct a solicitor? Understanding the claims company vs solicitor question matters, because it affects who actually handles your case, how much you pay, and how well you are protected if something goes wrong. This guide explains the difference plainly and fairly, so you can decide who should run your deposit claim.
First, what is the difference?
The two routes sound similar but are not the same.
A claims-management company
A claims-management company (sometimes called a “claims company” or an intermediary) is a business that markets for cases, signs you up, and then often passes your file to a separate panel solicitor to do the legal work. The claims company itself usually does not conduct litigation. It is the middle layer between you and the lawyer. Claims-management companies are regulated by the Financial Conduct Authority (FCA), not the legal regulator.
A solicitor
A solicitor is a qualified, regulated legal professional. A firm of solicitors is authorised and regulated by the Solicitors Regulation Authority (SRA). When you instruct a solicitor directly, the people running your tenancy deposit claim company search are the same people who give you legal advice, draft your court documents, and represent you. There is no extra layer in between.
Cook Legal Solicitors is an SRA-regulated firm of solicitors. When you come to us, you are instructing actual solicitors directly – not signing up to be passed on.
Comparison at a glance
| Feature | Claims-management company | SRA-regulated solicitor (e.g. Cook Legal) |
|---|---|---|
| Who handles your case | May sign you up, then pass your file to a panel solicitor | Solicitors handle it from start to finish |
| Regulator | Financial Conduct Authority (FCA) | Solicitors Regulation Authority (SRA) |
| Can give legal advice | Generally no – that is the panel solicitor’s role | Yes – that is the core service |
| Can run court proceedings | Usually not directly | Yes |
| Layers between you and the lawyer | One (the company sits in the middle) | None – you deal with the firm directly |
| Professional indemnity insurance | Varies | Mandatory for SRA-regulated firms |
| Complaints route | FCA / Financial Ombudsman | Legal Ombudsman and SRA |
| Typical fee model | No-win-no-fee, fee varies | No-win-no-fee, success fee capped at 25% of compensation |
Why “who handles it” matters
The phrase “no-win-no-fee” appears almost everywhere, so it rarely helps you choose. The more useful question is: who is actually doing the legal work, and are they accountable to you?
With a claims company, your relationship may be with the marketing business, while the legal work happens at a panel firm you never chose. That can mean slower communication, less clarity about who to chase, and an extra set of hands taking a margin. None of that is necessarily improper – many claims companies operate honestly – but it does add distance between you and your lawyer.
When you instruct a solicitor directly, that distance disappears. The person assessing your case, advising you on the strength of your claim, and (if needed) issuing court proceedings is one regulated team. If you have read our guide on taking legal action against your landlord, you will know how much of a deposit claim turns on getting the legal detail right – and that detail is squarely a solicitor’s job.
What about cost?
Both routes are usually offered on a no-win-no-fee basis, meaning you pay nothing up front and nothing if the claim does not succeed. The important comparison is the success fee – the percentage taken from your compensation if you win.
At Cook Legal, our success fee is capped at 25% of the compensation recovered. Because we are the solicitors, there is no separate claims-company cut on top. When comparing any best tenancy deposit claim company offer, always ask for the total percentage you will pay, in writing, and check whether a referral or introducer fee sits behind it.
Five questions to ask before you sign anything
- Are you the solicitors, or will my case be passed to a panel firm? A direct answer tells you a lot.
- Who is your regulator? SRA means you are dealing with a solicitor; FCA usually means a claims company.
- What is the total success fee, and is anything added on top? Get the full figure in writing.
- Who will I speak to about my case? Ideally the people doing the legal work.
- What happens if I am unhappy? Solicitors answer to the Legal Ombudsman and the SRA.
Is one route always better?
No – and we will not pretend otherwise. A reputable claims company can be a perfectly legitimate way to reach a solicitor, and some tenants are happy with that. But for a tenancy deposit claim, where the outcome depends almost entirely on legal points such as whether the deposit was protected and whether prescribed information was served correctly, many tenants prefer to remove the middle layer and go straight to a deposit claim solicitor. You get advice from a regulated lawyer, accountability if anything goes wrong, and no extra hand in the pot.
If you are still working out whether you even have a claim, our guide on how to check if your deposit was protected is a good place to start before you choose who runs it.
Frequently asked questions
Is a claims company cheaper than a solicitor?
Not necessarily. A claims company that passes your case to a panel solicitor may add its own margin. With a solicitor like Cook Legal, the success fee is capped at 25% of your compensation and there is no separate claims-company cut.
Can a claims company take me to court?
Generally not directly. Conducting litigation is reserved legal work, so a claims company will usually rely on a panel solicitor to issue and run court proceedings.
How do I know if I am dealing with a solicitor?
Ask who regulates them. Solicitors are authorised and regulated by the Solicitors Regulation Authority (SRA) and carry mandatory professional indemnity insurance. You can also check a firm on the SRA’s public register.
What if I have already signed with a claims company?
Read your agreement carefully, including any cancellation rights. If you are unsure where your case stands, a solicitor can usually review your position.
This article is general information, not legal advice. For advice on your own situation, contact Cook Legal Solicitors for a free deposit check.
Ready to deal with solicitors directly? Cook Legal Solicitors offer a free, no-obligation deposit check on a no-win-no-fee basis, with our success fee capped at 25% of any compensation. Call us today on 0151 665 0320 and let qualified solicitors run your deposit claim from start to finish.