Investment In Litigation Funding ?

HappyHarry · 14 February 2018 at 11:19AM

Malthusian wrote: »

That this is a real problem is an objective fact, because the FCA has ordered mortgage lenders to pro-actively find out if they have done this and if so, compensate borrowers.

Point 1.19 in the document linked to by Malthusian says:
Our analysis indicates that the financial impact for most customers may have been relatively small with estimated remediation likely to be in the low hundreds of pounds.

Hardly £25,000, but much closer to the figure that redux alluded to above;

An average claim of £4000 is settled at an average of £50 (which is 20M/400k)

This sounds like a high risk, low return type of investment to me, rather than the low risk, high return type investment alluded to.

John200 · 15 February 2018 at 6:48PM

I don't think Box Legal on their web site are stating they have settled 400,000 claims, they just have 400,000 policies which have all paid a premium, they could be huge policies covering a lot more than £4,000 per policy, with huge premiums attached,who knows how many of that 400,000 have been paid out on, what is known is Box legal are regulated by the fca and if they go bust 90% of capital will be covered by FSCS, I presume not just Allansons but any policy holder, I'm not 100% sure but its my best guess. to be clear the investment is not covered by the fca it is covered by insurance the FSCS ony applies if the insurance company goes bust, that's how I interpret it but I could be wrong. the insurer is only relevant if a case loses in court and the insurer goes bust, if cases win its irrelevant. anyway if you are bothered to reply to posts I would think you would google box legal and see for yourself, look em up on the FCA register, don't take my word, I'm not trying to be argumentative but am just interested in understanding more about the opportunity

le_loup · 15 February 2018 at 6:52PM

John200 wrote: »

but am just interested in understanding more about the opportunity

Yes, that's the word. A great opportunity to throw money away.

John200 · 16 February 2018 at 1:21AM

why do you say that ? I don't understand these glib, off the cuff replies, with no substance, is that what this forum is for, because they are valueless replies

John200 · 16 February 2018 at 1:26AM

they double dipped, charging interest on outstanding interest and monthly fees for being in arrears, that's where the breach of contract occurred if I understand it correctly

John200 · 16 February 2018 at 1:37AM

if a case loses then you might end up with just getting your investment back with no profit, through the insurance, independent barristers have stated they estimate 75% of cased will be settled out of court or win. the real money isn't made by the investor in a winning case, the real money is earned by the solicitor on a cut of the compensation on a no win no fee basis. so to the solicitor, funders just mean they don't have to stump up the money up front. I have read the brochure

John200 · 16 February 2018 at 1:56AM

possibly, meant if a case loses, you only get your investment back, there is no profit, as to your reasoning of why don't the solicitors fund the cases themselves ? it doesn't make any business sense to fund cases as a solicitor, who would tie their own money up when the big money is to be made at the end when a case wins on the cut of the no win no fee, smart money will let funders fund all day and tie their money up for up to 18 months, funders will que up to do it cos it beats leaving money in the bank, exactly the same reasons companies will borrow from banks and pay interest rather than tie up cash that is needed for everyday cash flow while the borrowed money earns so much more than the interest repayment.

bostonerimus · 16 February 2018 at 5:03AM

John200 wrote: »

.............. I'm not trying to be argumentative but am just interested in understanding more about the opportunity

Your posts read as if you are trying to "educate" us rather than learn from our responses. I conclude that your are probably more likely to be selling than buying, but if I'm wrong then go ahead and invest in this scheme against all our advice. You and your fellow low post number members seem to be enthusiastic, but i don't think you'll find many other takers.......cue the Yakety Sax music.

Malthusian · 16 February 2018 at 12:07PM

John200 wrote: »

to be clear the investment is not covered by the fca it is covered by insurance the FSCS ony applies if the insurance company goes bust, that's how I interpret it but I could be wrong. the insurer is only relevant if a case loses in court and the insurer goes bust, if cases win its irrelevant.

Again, the insurer is not Box Legal, which is not authorised to effect contracts of insurance. Look them up on the FCA Register yourself. Box Legal has brokered the insurance contract, which is with Leeward Insurance. Leeward Insurance is based in Bermuda and is therefore not covered by the FSCS.

You complain about people making glib off the cuff replies yet ignore detailed factual posts which point out where you are mistaken about both the detail of the investment (e.g. who the insurer is) and the risk involved.

Five posts in quick succession and in none of them have you answered my question as to why the litigants need to sue their lender in the courts when they not only can, but should go to the Financial Ombudsman Service.

dealer_wins · 16 February 2018 at 12:55PM

If one day you are bored of having a lump sum of money, "invest" it in this scheme and wave it goodbye lol

Investment In Litigation Funding ?

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