| In the last 2 years the UK market has become | | | | It's a sad state of affairs, because the process is |
| swamped with advertising about writing off credit | | | | 100% legal and relates to breaches of the Consumer |
| card, loan and car finance debt, if the finance was | | | | Credit Act of 1974 which was amended and updated |
| taken out before 1st April 2007. | | | | in 2007 and 2008. These changes were made to |
| "Is it a scam?" " Can it legally be done?" " If it sounds | | | | redress the balance of power in the lender/borrower |
| too good to be true, then it usually is." "I am sure it | | | | relationship, giving consumers more power to act |
| doesn't apply to my (High Street) bank!" These are all | | | | against lenders who may have mis-sold or mis-led |
| regular comments and questions I hear from potential | | | | clients. |
| clients. | | | | Nevertheless, no individual claims management |
| Having spent 2 years working with one of the largest | | | | company in the UK, has had any great measure of |
| Claims Management Companies (CMC's) in the UK, it | | | | success in proving the unenforceability of these |
| became clear that money was still being taken from | | | | finance agreements to date, yet they continue to |
| clients, when no real progress was made to progress | | | | trade and the regulatory bodies in the industry are |
| clients claims. Eventually it became clear that they | | | | not taking legal action fast enough to close down |
| weren't meeting even the barest minimum levels of | | | | these companies who don't comply with Ministry Of |
| customer service or their contractual commitments, | | | | Justice regulations in how they handle client claims. |
| and I ended my relationship with them. | | | | Help may at last be at hand now, for clients who |
| This is happening all over the UK - agents and reps | | | | have lost money to these companies. New |
| for nearly all the big CMC's are still submitting cases | | | | companies are entering the industry, who work with |
| and taking money off clients with no progress on | | | | only a handful of Barristers who can give legal opinion |
| previous cases, and no evidence that they can | | | | on these consumer finance claims cases. |
| successfully complete the claims process for their | | | | These companies work with solicitors who are able |
| clients. Reps and agents are leaving, dis-illusioned and | | | | to obtain ATE (After The Event Insurance) |
| unhappy that their own reputation has been tarnished | | | | insurance, and there are only a handful of solicitors in |
| by working with these companies. Having spent the | | | | this area (25 tops in the UK), who are able to access |
| last 8 months scouring the market for a good claims | | | | this insurance. This insurance is key to any client |
| management company to work with, I know the | | | | being able to proceed on a Conditional Fee |
| track record of nearly all the claims companies in the | | | | Agreement basis (commonly known as a "No Win, No |
| UK. | | | | Fee" arrangement). |