Defended Claims: Costs & Benefits

The benefits of proceeding on a Defended Basis are clear for all to see

Due to the nature and cost of setting up a Defended Claim, an Agreed Solicitor Fee of £975 for each Defended Claim is payable to the acting solicitor. As this payment is made direct to the legal firm, it is regulated by the Solicitors Regulation Authority (SRA) and, for your peace of mind, is ultimately covered by the Financial Ombudsman Compensation Scheme.

The Agreed Solicitor Fee covers a number of benefits of the Defended Claim service:

Solicitor time and work

A firm of solicitors will act on your behalf, advising you if a credit agreement is deemed to be unenforceable and communicating this to the lender. As the objective of a defended claim is to not take a claim to court, it is highly unlikely that the solicitors will be able to claim costs from the lender. For this reason, the Agreed Solicitor Fee needs to cover the fixed fees of the solicitor relating to the work they will complete.

An After The Event (ATE) insurance policy

One of the advantages of a Defended Claim is that the onus is on the lender to commence court proceedings if they believe that the audit and solicitors are wrong and the agreement is enforceable. ATE is required should a lender contest that the agreement is unenforceable and commences court proceedings. In the event of the lender being successful the ATE policy indemnifies you against (i.e. pays for) the costs of the lender bringing proceedings.

Indemnity Guarantee Insurance

The purchase of First Stage Indemnity Guarantee Insurance is included within the Agreed Solicitor Fee. This policy, £1000 cover, indemnifies you for (i.e. repays) the payment of the Agreed Solicitor Fee should a defence be unsuccessful.

There is the option to purchase further Indemnity Guarantee Insurance to give even greater protection.

Monthly Claims Management Fee

When we notify you that an agreement has been deemed unenforceable and that you have been advised to cease repayments, a monthly Claims Management Fee will be due.

The Claims Management Fee will equal 30% + VAT of the outstanding balance on the product at the poinnt you cease repayments (subject to a minimum of £600). To make life even easier for you, the Claims Management Fee is paid on a monthly basis at an amount you can afford (or alternatively, if you so wish, you have the option to pay in full).

 
 
 
 
 
 
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A claim for compensation or unenforceability can be a lengthy and complex process, reliant on a number of factors, and a successful outcome cannot be guaranteed. Whilst your claim is ongoing please maintain payments, otherwise your credit rating may be adversely affected.  

Grass Roots (Financial) Limited is regulated by the Ministry of Justice in respect of regulated claims management activities. Our authorisation number is CRM19970 and our registration is recorded on the Ministry of Justice website www.claimsregulation.gov.uk. Grass Roots (Financial) Limited, a company registered in England and Wales.

Grass Roots (Financial) Limited

0845 117 0125 enquiries@grassrootsfinancial.co.uk

Grass Roots (Financial) Limited is registered in England and Wales No: 05979001 Registered Office Address: Building 5, Universal Square, Manchester, M12 6JH.

Consumer Credit Licence No: 0598835

Data Protection Registration No: Z1696903