Those that tried to get CC "written off" could face £30k bill

ILW

Cartel customers face £30k court fees

Customers of claims company Cartel Client Review could find themselves further in debt to the tune of £30,000 after it has emerged its legal firm botched their court cases.

The firm working almost exclusively on Cartel's 'debt-free' cases, Consumer Credit Litigation Solicitors, was shut down by the Solicitors Regulation Authority last week due to concerns over 'suspected dishonesty'. It has now emerged CCLS took four cases to a Manchester High Court before Christmas as part of 10 test cases chosen by a Judge Waksman to decide the circumstances in which debts could be deemed 'unenforceable'.

CCLS failed to win the cases for its clients and had costs awarded against them.

Read more: http://www.thisismoney.co.uk/credit-and-loans/dealing-with-debt/article.html?in_article_id=501017&in_page_id=62&po sition=moretopstories#ixzz0iFtycJbc

Read more: http://www.thisismoney.co.uk/credit-and-loans/dealing-with-debt/article.html?in_article_id=501017&in_page_id=62&po sition=moretopstories#ixzz0iFs1Ebnz

immoral_angeluk

I can't see them putting the charges onto the customer, I'd imagine it would be up to Cartel to pay the costs along with a fine.. but then again stranger things have happened. Uncertain times for Cartel clients at the moment..

Voyager2002

immoral_angeluk wrote: »

I can't see them putting the charges onto the customer, I'd imagine it would be up to Cartel to pay the costs along with a fine.. but then again stranger things have happened. Uncertain times for Cartel clients at the moment..

No. The court will have awarded costs against the individuals for whom the solicitors were acting. Since there was a 'no win - no fee' agreement the individuals can then demand that their solicitor pick up the bill. However, their solicitor no longer exists, leaving them in the front line.

PROLIANT

Looks like 'easy street' has back fired and justice will be served!

immoral_angeluk

Voyager2002 wrote: »

No. The court will have awarded costs against the individuals for whom the solicitors were acting. Since there was a 'no win - no fee' agreement the individuals can then demand that their solicitor pick up the bill. However, their solicitor no longer exists, leaving them in the front line.

Very true, I would say there must be some kind of regulation to protect the clients but from the sounds of it their 'solicitors' weren't exactly acting within guidelines etc anyway..

Typhoon2000

Normally the client would have taken out insurance to cover court costs, with the solicitors picking up the premium to be paid in no win no fee cases. Though if it is a large firm i guess they could have chosen to bare any costs themselves to save on insurance cost if they believed they could win. In this case the clients will have to depend on the solicitor holding up to their end of the contract they signed with the clients.

exel1966

This thread has put a on my face !

immoral_angeluk

Typhoon2000 wrote: »

Normally the client would have taken out insurance to cover court costs, with the solicitors picking up the premium to be paid in no win no fee cases. Though if it is a large firm i guess they could have chosen to bare any costs themselves to save on insurance cost if they believed they could win. In this case the clients will have to depend on the solicitor holding up to their end of the contract they signed with the clients.

Would it be possible for the clients to take out a small claims against the solicitors if they are left with the court costs? Although granted if they end up being shut down by the SFA I'd imagine it would be a fruitless exercise..

Typhoon2000

Yes sure the clients can sue for costs incured if the contract has been broken. Though if the sum is as much as has been reported, it wont be though a small claims court and they will need to employ a firm of solicitors.....

immoral_angeluk

Isnt the 30k combined between the (500 was it?) test cases that had all gone to court?

Typhoon2000

The artilcle mentions £30000 each and 10 claiments. £300,000 total court and legal costs sounds about right I guess.