Investment In Litigation Funding ?

To be clear i did sign up to a newsletter to recieve investment opportunities so it wasn't unsolicited

I'll put some more info from the email, I've removed the company names so its not spammy:

Welcome to *************, we are pleased to introduce you to our latest offering.

************* has recently partnered with a regulated firm of solicitors called *************. This investment will allow investors to fund litigation cases specific to breach of mortgage contracts and in turn bring such cases to settlement and therefore achieving a return.

This has created a unique and exclusive investment opportunity for eligible savers and investors alike who are simply seeking to gain better returns than what the banks are currently offering.

If you are frustrated with the low returns offered by banks but don’t want to risk your hard-earned savings by investing in volatile stocks and shares, then we would like to ask you to consider *************'s varied range of fixed-rate investment bonds that give varying levels of returns depending on your investment preference.

Please find herein this email an investment summary for our most recent offering,************* Litigation Funding opportunity.





The Summary

************* - Open
Investment Term - 6-18 months
Potential Yield - 5% of the award and 30% of base legal fees
Minimum Investment Amount - £4,000.00
Investment Instrument - Litigation Funding
Security - 1) Insurance Policy - Arranged by Box Legal, authorised and regulated by the FCA (Financial Conduct Authority)
2) Covered by the FSCS (Financial Services Compensation Scheme)
3) ************* regulated (Solicitors Regulation Authority)


The Company and The Investment

************* is a well-established firm of solicitors regulated by the Solicitors Regulation Authority with a wealth of experience spanning over a 20-year history dealing in a wide-range of handling client cases such as conveyancing and other property related matters.

Litigation Funding has been a growing industry in the UK for over a decade, though only since a series of reforms in 2013 the market has grown from strength to strength. Due to increasing costs in bringing lawsuits to court, Litigation Funding has opened up a market whereby retail investors can fund such cases and in turn be enabled to share the profits which are achieved by the solicitors.

One of the most popular forms of Litigation Funding is through a claim for a breach of mortgage - this is where a large number of borrowers over the years have essentially overpaid due to mortgage payment miscalculations issued by the mortgage lenders such as banks and building societies.

Potential claimants will contact expert solicitors within their field and this is where ************* are brought into the fold. Using marketing campaigns to find potential claimants (similar to PPI), ************* will review a claimants application and if the case is worth the financial reward for the solicitor then the case will be taken on. These type of claims are treated on a 'no win, no fee' basis, and of course, funding must come from somewhere and more often than not these cases are funded by the solicitor and an investor - this means the costs for the solicitor are shared with the investor, and ultimately so are the returns.


What are the returns?

Each case for an investor to fund costs £4,000 and ************* will only entertain cases with a high chance of success, and with an estimated award value of £25,000.

Investors will receive a 5% return on investment from any settlement awarded to the claimant, plus you will receive 30% of the base legal fees associated with the case. Therefore, in monetary gains, for a £4,000 case with an estimated award value of £25,000 - you will receive 5% of the settlement which equals to £1,250 return, plus 30% of the base legal fees which equals to £750 - this equals to a £2,000 profit and a total return on investment (including your original investment) at £6,000.

Breakdown of returns (100%):

Claimant = 70%
Firstly, the claimant will naturally receive the majority of the settlement which equals to 70%.
************* = 20%
Secondly, ************* will earn the second majority from the settlement which equals to 20%.
Investor = 5%
Thirdly, the investor will receive their return which equals to 5%.
VAT = 5%
Lastly, VAT is also incorporated which equals to 5%.

How are returns achieved?

There are 3 outcomes within the investment:

1) Out-of-Court Settlement - this is the most likely outcome and will typically take a 6-12 month timeframe to achieve a return on your investment.

2) Court Win - this is the second most likely outcome and will typically take a 12-18 month timeframe to achieve a return on your investment. It is worth noting, a court win has a 75% chance of success and this has been derived from a barristers opinion.

3) Court Loss - this is the least likely outcome and will also mean that you will not achieve a return on your investment. However, your initial investment is completely secured and therefore you will not lose your original investment and you will receive your funds back typically within a 2-week period.

The Brochure

Please find the Key Features Booklet here: ************* - Key Features Booklet

The Security

For the best interests of investors, ************* offers the following:

Full Capital Protection Insurance Policy

The insurance policy for the investment is arranged by Box Legal (**link**) and underwritten by Leeward Insurance (**link**]).

This policy provides absolute protection for the full amount you have invested. This means that your initial investment will be completely ring-fenced, and 100% protected. Box Legal has been in business since 2004 and has paid out over £20m in claims which equates to a 97.1% payout rate in the past 12-years. Box Legal is authorised and regulated by the Financial Conduct Authority.

Please see link to Insurance Policy: Capital Protection Insurance Policy

How does the Insurance Policy work?

In the unlikely event that a case you fund goes to court and ************* lose, they will make a claim on your behalf against this policy, and you will receive your full investment back within about two weeks of the claim.

Again, in the unlikely event that Leeward Insurance could not payout, then Box Legal would be liable to pay, and if they could not pay then the FSCS (Financial Services Compensation Scheme) would cover up to 90% of your investment. However, it is worth noting these potential steps are a highly unlikely event and you should receive payout on the first stage by Leeward Insurance.

Upon review of the details, please let me know if you would like to receive an application or if you have any further questions.

We hope that you find our latest offering to be both interesting, and informative and we look forward to potentially welcoming you on-board with ************* and *************

I'm a new user so I cant post links but if you go to the BBC website and search for 'Thousands of mortgage arrears customers to get redress' it explains why some people are eligible for refunds after a recent court ruling

--from the bbc article---

"The problem has arisen where mortgage arrears have been automatically included in regular monthly payments.

That has left some customers paying higher mortgage payments than they should have been.

As many as 750,000 consumers may have been affected overall, but not everyone will be entitled to compensation."

---

So I get the business model. I'm just not sure about the risks..

HappyHarry wrote: »

Although that same article also says that "The Financial Conduct Authority (FCA) has ordered lenders to work out who is affected, and how much they are owed."

The article also says "On average, those who are eligible for payments will receive redress "in the low hundreds" of pounds, the FCA said."


If the FCA are asking the lenders to work out how much is owed, and to whom, I don't see there being the need for any litigation to recover funds for individuals.

OP, please could you post the details of the company. With the other comments on here so far, I can't see that anyone will now believe you are spamming.

Thankyou for the information, very helpful!

The firm is Delta Market and is partnered with solicitors called Allansons LLP.

Both look reputable as far as I can tell..