Like most firms at the moment I’ve been looking at the legal market to identify new areas of claim which might present new litigation opportunities outside personal injury.
One area I’ve identified, is Professional Negligence claims in relation to so called “mortgage mis selling”.
This is potentially a huge market and it seems that so far a number of PPI Claims Companies have tried to run some of these claims through the Financial Ombudsman Service (FOS), without any great deal of success. That’s probably because these aren’t FOS based claims, they are in reality Professional Negligence claims requiring litigation, which means they are solicitor led claims rather than CMC led claims.
The claims are based on breaches of the FSA Mortgage and Home Finance Conduct of Business Rules (MCOB), against both Lenders, Mortgage Brokers and their PII Insurers, giving rise to actions for damages for breach of statutory duty pursuant to section 150 of the Financial Services and Market Act.
I’ve spent some time recently looking at this opportunity with Saxon Risk Management, who are able to source clients with potential claims in this area and provide CPR Part 35 compliant Expert Witness Reports, which form the basis of the claims.
Saxon Risk Management has worked closely with Steven Woolf at Hardwicke Chambers, who has taken a particular interest in these types of Professional Negligence claim.
In simple terms Saxon Risk Management can help firms to establish a foothold in this market by providing:
Ø A client sourcing service through their sister company Bainbridge Hayes (a debt management company with access to 000’s of clients with potential claims)
Ø Each client is sourced to meet your specific requirements for example those with mis sold Self Certification Mortgages, or clients mis sold mortgages way beyond retirement, with no regard to the clients ability to repay etc.
Ø A Preliminary Report identifying Heads of Claim, causation, loss and value – is produced for your consideration on an accept or reject basis.
Ø On accepted cases, a client sign up service is provided, followed by a Data Subject Access Request to secure all the relevant documentation relating to the claim. This is then followed by an analysis of the loan documentation and the production of a detailed evidential Expert Witness Report, formalising the Heads of Claim, causation, loss and value – putting you in a position to issue a letter of claim.
In addition, their process is supported by guidance from Steven Woolf, based on his experience of claims in this area.
Saxon Risk Management will source clients and produce the Expert Witness Reports to order – there is no minimum commitment and if you are not happy with the Preliminary Reports, they will offer you a replacement case at no extra cost.
The service is clear and transparent and not covered by LASPO constraints.
You can engage the client on whatever retainer you choose, CFA or DBA and the cost of the Expert Witness Reports is potentially a recoverable disbursement. Claim values are significant, in some cases exceeding £100,000.
Examples of the Preliminary Reports and full Expert Witness Reports are available, to give you a feel for the quality of the product.
If you are interested in considering this emerging Professional Negligence market, let me know and I will send you further information and ask Saxon to contact you to discuss the opportunity in more detail and perhaps arrange an appointment.
Steven Woolf has written an article providing some background on the market here http://www.hardwicke.co.uk/insights/articles/mis-sold-mortgages-the-next-big-claim-in-the-financial-sector
The cost of the reports varies, but is likely to be around £1000.
If this is of interest please do not hestitate to contact me for more information