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  • FIRST POST
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 12:52 PM
    • 13Posts
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    5MeoDmt
    Investment In Litigation Funding ?
    • #1
    • 23rd Oct 17, 12:52 PM
    Investment In Litigation Funding ? 23rd Oct 17 at 12:52 PM
    Hi,

    Just wondering if anyone here has had any experience with this or can give me any more information

    Had an email about an investment which is basically funding no win-no fee court cases where borrowers have overpaid mortgage payments due to miscalculations by the mortgage lenders

    The returns look really good (£6000 return for a £4000 investment within 18 months) but I'm concerned there will be some hidden risks

    Any advice welcomed!
Page 1
    • ermine
    • By ermine 23rd Oct 17, 12:58 PM
    • 659 Posts
    • 985 Thanks
    ermine
    • #2
    • 23rd Oct 17, 12:58 PM
    • #2
    • 23rd Oct 17, 12:58 PM
    Any advice welcomed!
    Originally posted by 5MeoDmt
    Just the usual

    1. If an 'opportunity' seeks you out, run away

    2. if it looks too good to be true, it probably is
    • Biggles
    • By Biggles 23rd Oct 17, 1:02 PM
    • 7,612 Posts
    • 5,011 Thanks
    Biggles
    • #3
    • 23rd Oct 17, 1:02 PM
    • #3
    • 23rd Oct 17, 1:02 PM
    The returns look really good (£6000 return for a £4000 investment within 18 months) but I'm concerned there will be some hidden risks
    Originally posted by 5MeoDmt
    50% return on investment in 18/12? There will be loads of risks. And they'll all be hidden.
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 1:20 PM
    • 13 Posts
    • 3 Thanks
    5MeoDmt
    • #4
    • 23rd Oct 17, 1:20 PM
    • #4
    • 23rd Oct 17, 1:20 PM
    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 donít 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 *************
    • bostonerimus
    • By bostonerimus 23rd Oct 17, 1:24 PM
    • 1,816 Posts
    • 1,167 Thanks
    bostonerimus
    • #5
    • 23rd Oct 17, 1:24 PM
    • #5
    • 23rd Oct 17, 1:24 PM
    Run away as fast as you can!
    Misanthrope in search of similar for mutual loathing
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 1:31 PM
    • 13 Posts
    • 3 Thanks
    5MeoDmt
    • #6
    • 23rd Oct 17, 1:31 PM
    • #6
    • 23rd Oct 17, 1:31 PM
    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..
    • bostonerimus
    • By bostonerimus 23rd Oct 17, 1:47 PM
    • 1,816 Posts
    • 1,167 Thanks
    bostonerimus
    • #7
    • 23rd Oct 17, 1:47 PM
    • #7
    • 23rd Oct 17, 1:47 PM
    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..
    Originally posted by 5MeoDmt
    As I said, run away as fast as you can. This does not even pass the most cursory smell test. Forget about any "unique and exclusive investment opportunity"....that's classic sales pitch language.
    Misanthrope in search of similar for mutual loathing
    • bigadaj
    • By bigadaj 23rd Oct 17, 1:48 PM
    • 10,814 Posts
    • 7,137 Thanks
    bigadaj
    • #8
    • 23rd Oct 17, 1:48 PM
    • #8
    • 23rd Oct 17, 1:48 PM
    It's very high risk.


    A more established investment might be the juridica investment trust which has been operating for a number of years.


    It has a similar business model but dealing with larger companies and claims, it's performance has been very volatile but on average not a great return, you can look it up on morning star or trustnet.
    • HappyHarry
    • By HappyHarry 23rd Oct 17, 1:56 PM
    • 595 Posts
    • 871 Thanks
    HappyHarry
    • #9
    • 23rd Oct 17, 1:56 PM
    • #9
    • 23rd Oct 17, 1:56 PM
    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..
    Originally posted by 5MeoDmt
    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."

    http://www.bbc.co.uk/news/business-37702182

    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.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 2:18 PM
    • 13 Posts
    • 3 Thanks
    5MeoDmt
    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.
    Originally posted by HappyHarry

    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..
    • Thrugelmir
    • By Thrugelmir 23rd Oct 17, 2:20 PM
    • 58,448 Posts
    • 51,817 Thanks
    Thrugelmir
    Try Burford Capital, at least a quoted company.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • HappyHarry
    • By HappyHarry 23rd Oct 17, 2:30 PM
    • 595 Posts
    • 871 Thanks
    HappyHarry
    Typo
    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..
    Originally posted by 5MeoDmt
    Delta Market? The same Delta Market (Limited) that seems to have started life in May 2017 with one 22 year old director? Just how much of a reputation do they currently have?
    (n.b. Companies House is your friend here)

    Allansons LLP don't ring any alarm bells, but there is no information regarding a partnership with Delta Market on their website. I can't see any link anywhere between London based Delta Market and Bolton based Allansons solicitors.

    I would think that a call to the solicitors might provide further information?
    Last edited by HappyHarry; 23-10-2017 at 2:32 PM. Reason: Typos
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 2:37 PM
    • 13 Posts
    • 3 Thanks
    5MeoDmt
    Typo

    Delta Market? The same Delta Market (Limited) that seems to have started life in May 2017 with one 22 year old director? Just how much of a reputation do they currently have?
    (n.b. Companies House is your friend here)

    Allansons LLP don't ring any alarm bells, but there is no information regarding a partnership with Delta Market on their website. I can't see any link anywhere between London based Delta Market and Bolton based Allansons solicitors.

    I would think that a call to the solicitors might provide further information?
    Originally posted by HappyHarry

    The info I have is:

    Nigel Gibbs MSc FdA
    Senior Bond Consultant / Private Client Division
    Delta Market

    The South Quay Building
    189 Marsh Wall
    London
    E14 9SH


    0203 858 0049
    double ewe dot deltamarket dot coh dot uk
    • eskbanker
    • By eskbanker 23rd Oct 17, 2:38 PM
    • 7,091 Posts
    • 7,515 Thanks
    eskbanker
    Anyone considering investment in bargepoles?
    • HappyHarry
    • By HappyHarry 23rd Oct 17, 2:43 PM
    • 595 Posts
    • 871 Thanks
    HappyHarry
    The info I have is:

    Nigel Gibbs MSc FdA
    Senior Bond Consultant / Private Client Division
    Delta Market

    The South Quay Building
    189 Marsh Wall
    London
    E14 9SH


    0203 858 0049
    double ewe dot deltamarket dot coh dot uk
    Originally posted by 5MeoDmt
    That's the one. Look at the company registration number at the bottom of their web page, and look it up on Companies House.

    The ability to build a website and write an email should not be seen as a sign of reputability.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • george4064
    • By george4064 23rd Oct 17, 2:50 PM
    • 936 Posts
    • 1,017 Thanks
    george4064
    Try Burford Capital, at least a quoted company.
    Originally posted by Thrugelmir
    Was going to suggest the same.
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £12,427.51/£12,000 (104%)
    Save £12k in 2018 - #004 £3,330.20/£12,000 (28%)
    • sorcerer
    • By sorcerer 23rd Oct 17, 2:57 PM
    • 844 Posts
    • 403 Thanks
    sorcerer
    I remember looking at Juridica Investments, for this sort of thing, but didn't do it, because I thought the risk was too high. When I looked at it at the time it was 145p a share, now it's 9p, with a dividend yield of 85%. Dodged a bullet on that one.
    • 5MeoDmt
    • By 5MeoDmt 23rd Oct 17, 2:58 PM
    • 13 Posts
    • 3 Thanks
    5MeoDmt
    That's the one. Look at the company registration number at the bottom of their web page, and look it up on Companies House.

    The ability to build a website and write an email should not be seen as a sign of reputability.
    Originally posted by HappyHarry

    Thanks, I've learnt something today.

    It says registered in 2015 though, no?
    • HappyHarry
    • By HappyHarry 23rd Oct 17, 3:06 PM
    • 595 Posts
    • 871 Thanks
    HappyHarry
    Thanks, I've learnt something today.

    It says registered in 2015 though, no?
    Originally posted by 5MeoDmt
    Yeah - but it didn't do anything until a change of director in May2017.

    You can see the filing history on Companies House.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • ermine
    • By ermine 23rd Oct 17, 3:42 PM
    • 659 Posts
    • 985 Thanks
    ermine
    To be clear i did sign up to a newsletter to recieve investment opportunities so it wasn't unsolicited
    Originally posted by 5MeoDmt
    For the love of everything you hold dear, why? I guess the winter is drawing in and one needs kindling, but junk mail is usually good enough.

    This is so obviously scammy - I mean for God's sake read their website

    Who is Delta Market?

    Through a mixture of marketing and networking, Delta Market introduces prospective buyers with service providers.

    Translation. We are middle men at best. You pay our rent.
    Our focus is on building and maintaining relationships on both sides of the transaction.
    Our Vision
    At Delta Market our vision for the future is simple, we want everyday people to be granted the same options as those who have a stronger foothold in the financial markets.
    Britain's area of expertise is in finance. We have very deep and very open markets. If you can pay, you can play. No need for middlemen or people with the right sort of strange handshake.
    We aim to break the barriers of convention that have been set over time by larger financial institutions and service providers. The way we feel this can best be achieved is by providing a link between prospective clients with products and services that in many cases would not be so easily accessible to the general public
    Fluff and rubbish. What are these barriers of convention and where do they assert they exist? After all, you are hiring these guys to help fix that problem, would be a good idea to see proof of the existence of these problems.

    Observe they have agent as well as client login too, so there is another bunch of mugs/suckers who they are selling their services to, probably to write newsletters about excellent investment opportunities that offer even more of an ROI than 150% over 18 months.

    Just say no. As a previous poster said, it doesn't even pass the smell test. And throw the newsletter in the bin unopened in future. And hope you haven't ended up on a sucker's list

    There are ways of making an almost guaranteed 150% ROI. They're generally not legal.
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