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

The_Eye_Of_Sauron

Typhoon2000 wrote: »

I just read the first of the cases and it seems that HSBS offered to waive rights to its court cost if the defendent discontinued the action as it was clear there was no hope of success. Their solicitors agreed there was no hope of wining dicontinued the action but claimed costs till March 09. So HSBC stuck to their guns and the Judge awarded HSBC full costs. How daft!

Yes, well summed up. The Solicitors decided to bash on for costs, even though their claim was destined for failure. The Bank acted reasonably in offering them a get out ie 'if you discontinue now, we'll each pay our own costs'.

But because the Solicitors opted to fight on for their costs, even though they were abandoning their claims (losing, in effect), the Judge awarded costs against the Claimants.

If you discontinue your case, you have to pay the other side's costs, unless there are exceptional circumstances (Waksman gives a few examples in his judgment). No exceptional circumstances appertained to these credit write-off cases.

The problem with the way in which these cases were being brought is this- unless and until they actually issue a case, solicitors doing these sort of claims have got no chance of getting paid anything (as the banks point blank refused to settle out of court- rightly so, it would seem from the Carey judgment).

If a solicitor abandons a no-win no-fee case, he doesn't get paid. There will be thousands of cases out there now, in county courts across the land which will have to be discontinued, with claimants (or their no-win no-fee insurance, if there is any) paying all the bank's costs, or being struck out by the Courts because they are now doomed to fail- the costs consequences will be the same.

Oh dear, oh dear. If something looks too good to be true, it's usually because it is too good to be true....

SusieT

I think the solicitors would have taken out insurance for their fees, but I'm not sure if the insurers would pay out if the solicitors have not acted properly and if they have been closed down that would seem to be the case.

As an aside, I have heard that Cartel have started up again under a different name

soul619

any stories on people gutted they have ended up with bigger debts yet?

ILW

soul619 wrote: »

any stories on people gutted they have ended up with bigger debts yet?

Think they are keeping their heads down and hoping it will all go away.