Claims firm LoanCheck is struggling to build a legal panel for suing financial institutions and brokers and is citing law firms’ conflicts of interest as the problem.
The company says it needs a panel of litigation firms to deal with more than 600 cases of mortgage and loan mis- selling. It has spoken to 20 firms but has found that they are unwilling to pitch because their conveyancing departments cannot afford to upset their institutional clients.
LoanCheck managing director John Whittaker told The Lawyer: “Firms which have strong litigation [personal injury] groups also have strong conveyancing arms. While litigation partners think we have a brilliant business, when it’s put to partners it’s knocked back because of the conveyancing departments’ reliance on financial institutions.”
Whittaker believes that the number of claims arising from mortgage and loan mis-selling could dwarf the recent furore over pensions mis-selling.
His problems mirror those of many companies’ when trying to sue banks. Due to the huge size of banks’ legal panels, it is almost impossible to find a law firm to represent you in litigation against the banks – as revealed by The Lawyer (27 September 2004).
LoanCheck deals directly with consumer complaints over mis-selling and over-charging on mortgages and other financial products.
It provides a forensic auditing service of loans and mortgages through its software and staff. The company now needs a panel of 15-20 law firms to handle claims arising from its audits.
Leading clinical negligence barrister David Wilby QC of Old Square Chambers has written an opinion for LoanCheck, which concluded: “This is a vast area of potential litigation where, just like endowment mis-selling and the credit hire litigation, those who are aware of the litigation permutations are in a prime position to assist those who have suffered at the hands of those who are less scrupulous.”
How The Tide Has Turned
Loancheck is no longer struggling to build a panel, but quite the opposite.
New applications land on the doormat every day, and readers may not be aware of this opportunity.
My claims
I have put seventeen claims with loancheck through protected investment which went bust. It seems the only issue they can find with mine is secret commissions.three have been dropped, two after passing an audit reaching a solicitor! If my seventeen are a typical cross section and not everyone uses a broker, what is the point in claiming? Lots of people are to be disappointed I think.
I have 8 cases with Loancheck, most from October last year. Sarns have been completed but I have heard nothing since. Given the time lenders have to comply with the Data Protection Act, one wonders what is happening there?
I too have cases with them. after being told completion within 6-9 months!!! TWO YEARS down the line and it’s all turned into a massive disaster with auditors in administration etc etc. WHEN, MR JOHN WHITTAKER will you sort this MASSIVE mess out???????
John Whittaker able to sort out mess, ha ha thats the biggest joke… he just makes them. I submitted cases and got the usual promise but never delivered stuff. Would not advise this company for claims.