No win no fee saying i owe money

Henrique14

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Sorry if this is the wrong section but hoping someone can help. 

I was enticed to signing up for a no win no fee claim with a solicitor company on a car loan I took out a few years ago, about the loan company getting a commission on the car loan and me not knowing about it.

I was told at a later stage of proceedings that I would need to attend court in person and accompanied by my legal defence who I signed up with, I wasn't aware this would be the case. 

I said I would think about whether I would want to proceed with them which was about a week ago, I've had an email from them today saying if they don't hear from me about the case then I'll have to pay their fees of £3,845 as I'm in breach of my agreement with them !? Can someone tell me if this is true? 

The letter states I'm in breach of my no win no fee contract with them as I haven't decided what to do? 

I'm genuinely worried now are they threatening me with almost £4,000 costs if I decide not to proceed? But if I do proceed and don't win the case I don't need to pay anything, I have no idea whether they can act in this way?

I've attached image of letter 

Thanks 

MorningcoffeeIV

Henrique14 said:

The letter states I'm in breach of my no win no fee contract with them as I haven't decided what to do? 

That would be the case.

Unless you have the means to pay it, I suggest you co-operate let them proceed.  The worst (and most likely case) is that you get nothing, The best is that you get some cash.

eskbanker

Henrique14 said:

The letter states I'm in breach of my no win no fee contract with them...

And are you, i.e. what does it say?

DullGreyGuy

Henrique14 said:

I was told at a later stage of proceedings that I would need to attend court in person and accompanied by my legal defence who I signed up with, I wasn't aware this would be the case. 

I said I would think about whether I would want to proceed with them which was about a week ago, I've had an email from them today saying if they don't hear from me about the case then I'll have to pay their fees of £3,845 as I'm in breach of my agreement with them !? Can someone tell me if this is true? 

The letter states I'm in breach of my no win no fee contract with them as I haven't decided what to do? 

I'm genuinely worried now are they threatening me with almost £4,000 costs if I decide not to proceed? But if I do proceed and don't win the case I don't need to pay anything, I have no idea whether they can act in this way?

How do you think you sue a company other than by going to court? You hope for an out of court settlement naturally but most of these claims are baseless and so will be defended. 

No win, no fee works on the basis that the solicitor buys insurance that covers their costs, including the cost of the insurance, should they not win the case. The insurer doesn't cover the cost of the case if you get bored of the process and want to discontinue it or get cold feet etc. In those circumstances the costs you have incurred get directed back to you to settle. 

It's fairly straight forward... decide you want to end the action and pay their fees or continue the action and the insurance will do its thing when if you lose. 

Henrique14

DullGreyGuy said:

Henrique14 said:

I was told at a later stage of proceedings that I would need to attend court in person and accompanied by my legal defence who I signed up with, I wasn't aware this would be the case. 

I said I would think about whether I would want to proceed with them which was about a week ago, I've had an email from them today saying if they don't hear from me about the case then I'll have to pay their fees of £3,845 as I'm in breach of my agreement with them !? Can someone tell me if this is true? 

The letter states I'm in breach of my no win no fee contract with them as I haven't decided what to do? 

I'm genuinely worried now are they threatening me with almost £4,000 costs if I decide not to proceed? But if I do proceed and don't win the case I don't need to pay anything, I have no idea whether they can act in this way?

How do you think you sue a company other than by going to court? You hope for an out of court settlement naturally but most of these claims are baseless and so will be defended. 

No win, no fee works on the basis that the solicitor buys insurance that covers their costs, including the cost of the insurance, should they not win the case. The insurer doesn't cover the cost of the case if you get bored of the process and want to discontinue it or get cold feet etc. In those circumstances the costs you have incurred get directed back to you to settle. 

It's fairly straight forward... decide you want to end the action and pay their fees or continue the action and the insurance will do its thing when if you lose. 

So if I continue the action and the case loses I don't pay anything? But if I wish to cancel now I have to pay the fees they quoted on the letter? Is that correct? 

[Deleted User]

Yes that is correct.

sheramber

That is how no win, no fee works.

Henrique14

[Deleted User] said:

Yes that is correct.

Thanks. Guess it's best I just let them proceed then. My only concern is they've said I have to attend court, I've neve attended court in my life and have no idea what happens. I wouldn't mind if they attended on my behalf but not sure what I'd need to do there, if anything.

DullGreyGuy

Henrique14 said:

DullGreyGuy said:

Henrique14 said:

I was told at a later stage of proceedings that I would need to attend court in person and accompanied by my legal defence who I signed up with, I wasn't aware this would be the case. 

I said I would think about whether I would want to proceed with them which was about a week ago, I've had an email from them today saying if they don't hear from me about the case then I'll have to pay their fees of £3,845 as I'm in breach of my agreement with them !? Can someone tell me if this is true? 

The letter states I'm in breach of my no win no fee contract with them as I haven't decided what to do? 

I'm genuinely worried now are they threatening me with almost £4,000 costs if I decide not to proceed? But if I do proceed and don't win the case I don't need to pay anything, I have no idea whether they can act in this way?

How do you think you sue a company other than by going to court? You hope for an out of court settlement naturally but most of these claims are baseless and so will be defended. 

No win, no fee works on the basis that the solicitor buys insurance that covers their costs, including the cost of the insurance, should they not win the case. The insurer doesn't cover the cost of the case if you get bored of the process and want to discontinue it or get cold feet etc. In those circumstances the costs you have incurred get directed back to you to settle. 

It's fairly straight forward... decide you want to end the action and pay their fees or continue the action and the insurance will do its thing when if you lose. 

So if I continue the action and the case loses I don't pay anything? But if I wish to cancel now I have to pay the fees they quoted on the letter? Is that correct? 

Ultimately read what you signed up to but that would be the norm, occasionally you may have to pay for some disbursements like the insurance (it normally self insures though)... or if your solicitors decide to discontinue because there aren't realistic prospects of success then the insurance also covers that scenario. It doesn't cover your change of mind.

Brie

I can't imagine there would be much of anything for you to do in court.  Sit back and watch the proceedings.  At most answer a couple of questions.  If you have any problem answering questions then just refer to your legal person.  

born_again

Sadly this is all part of of the game, these companies are just chancing their arm that who they are claiming from are just going to roll over & pay up. But where financial mis selling is claimed. The lender will fight it.
So I hope you have a good case lined up for when you get to court.
Simply saying I was miss sold, because this company said I could claim money is never going to cut it.

At least you took out the insurance in case you lost.. Many don't & can end up in debt for a long time. All for the hope of a payout.