Following the appointment of administrators at most of the “Pure Legal” entities, a number of the “Interest Only” complaint cases have been passed on to new legal representatives. These were the result of DSAR’s where cases were being constructed to show that the advice provided, usually between 2004 and 2008, was incorrect.
Early indications are that the firms that have picked up these cases are not seeing much to pursue. AMI has been made aware that some of the potential claimants have been told that they do not have a legitimate complaint. As a consequence, the firms are asking for the “After the Event” insurance to be invoked and where that is not possible for the lending funder to write off the loan. This is positive news for broker firms and for indeed the consumer, as they should not be out of pocket.
Finally, there are unconfirmed reports that those that have reviewed the cases cannot see why they were commenced and consider the activities as potentially vexatious. It is to be hoped that if that is the case then those that pursued these cases are not allowed back anywhere near claims management in the future.
Robert Sinclair, AMI Chief Executive