Undisclosed Commissions 

The Financial Conduct Authority (FCA) have announced that they have begun a review of historical motor finance commission arrangements and are investigating whether there has been widespread misconduct owing to the operation of discretionary commission arrangements.

In their announcement the FCA indicate that they will be releasing additional rules and guidance in September 2024 on complaints about discretionary commission arrangements. Further, the FCA have put a 9 month pause on complaints being referred to the Financial Ombudsman Service (FOS).

To date, finance providers have shown unwillingness to settle undisclosed commission claims without court proceedings being issued, and where complaints have been referred to the FOS there have been inconsistent decisions.

We are confident that this recent announcement, and the impending rules and guidance, should encourage finance providers to reconsider their position. Further, the rules and guidance should allow for greater certainty going forward when undisclosed commission claims are referred to the FOS.

We are in the process of writing again to our clients’ finance providers, to ensure they are aware of our stance in relation to these developments and to again seek to settle these claims.

Further, we continue to progress our eight group actions through the Birmingham courts alleging the existence and operation of discretionary commission arrangements in motor finance agreements. The recent FCA announcement supports the arguments we have advanced to further these claims, whilst the pause on referring complaints to the FOS does not apply to court proceedings. As such, we are able to continue to progress these claims regardless of the pause.

Affordability

Barings Law are currently assisting thousands of our clients with affordability complaints against their finance provider. These complaints allege that inadequate credit and affordability checks were carried out when our clients were entering into their finance agreements. This led to a number of our clients being unable to keep up with their monthly repayments and suffering financial hardship.

We have successfully recovered thousands back in compensation for our clients and the average offer received is approximately £4,600.

We will be reaching out to all clients to assess their eligibility for an affordability complaint against their finance provider.

Capita

As of January 12, 2024, Barings Law initiated court proceedings against Capita in the High Court in London. We are the first law firm in the UK to issue this claim in court. This step has been taken due to Capita’s denial of liability. 

There are certain procedural steps that Capita representatives will have to take; we envisage that the next update will take approximately three months from the issue date. 

South Staffs Water

South Staffs Water has accepted liability for the data breach. We are now in the process of negotiating settlements on behalf of the clients we represent. Negotiations are expected to take place over the next three to six months. We aim to get a compensation figure that is consistent with how the breach has affected our clients. 

DSG (Trading as Curry’s Retail)

A recent case management hearing was held on January 18, 2024. The judge released their judgement and has asked that Barings wait for the appeal DSG Retail Limited (Currys Retail) is making against the ICO (Information Commissioner’s Office) fine. 

The appeal is due to be heard in July 2024, and a decision will follow a few months after this. Upon receiving the decision, we will receive further communication from DSG Retail representatives. 

Carphone Warehouse (Trading as Curry’s Retail)

We are currently awaiting guidance from the court for further directions following our recent case management hearing. Once a hearing date is allocated for this matter, we will be in touch with our clients to provide an update. 

Barings Law continues to demonstrate unwavering dedication to upholding justice, a commitment that has been exemplified through various legal proceedings. Since the landmark ‘at the premises’ High Court case of London International Exhibition Centre Plc v Royal Sun Alliance Plc & Others, where Barings Law represented six Claimants, the firm has actively pursued justice by filing numerous cases in the High Court. As we eagerly anticipate the appeal hearing scheduled for June 2024, Barings Law’s proactive stance has resulted in the issuance of 1,040 cases with the High Court (KBD), along with the submission of Particulars of Claim for 487 cases. 

One notable case, the ‘Bellini’ appeal involving Bellini (NE) Limited v Brit UW Limited, has seen Barings Law’s persistent efforts to seek justice. Following the initial hearing dated 13 June 2023, Barings Law sought permission to appeal to the Court of Appeal, which was successfully granted. The appeal has been listed for 17-18 April 2024. 

Barings Law continues to actively work on several clauses, which are currently untested in the court system. 

Recently, Barings Law successfully identified an alternative route to claim for clients who, at one point, faced discouragement due to challenging precedents set earlier in 2021. 

The clause identified is known as the ‘Bomb Hoax/Bomb Scare’ clients, which requires any action by the civil authority following a danger or disturbance in the vicinity of the Premises whereby access is prevented. 

Barings Law currently represents a significant number of policyholders, approximately 160 relating to this specific clause, in claims against three distinct insurers. Although the insurers’ positions may vary and the claims are vigorously defended, there are positive signs of being able to negotiate a successful outcome with the insurers. To test the validity of the identified policy clauses and move the cases forward, Barings Law is now proceeding with running these cases as a test case against the insurer(s) at a preliminary issue trial, where a judge will assess whether the policy indeed provides cover as asserted by the claimants. 

An application hearing has been listed for 26 April 2024, during which Barings Law will present our arguments and seek the court’s directions for proceeding with the trial of preliminary issues. 

In the meantime, Barings Law continues to engage in negotiation and settlement discussions with insurers, aiming to achieve fair resolutions for its clients.

The lenders have unfortunately been reluctant to settle these claims and as such, we have been left with no alternative but to issue the claims at court which we are now actively pursuing. With many claims having already been issued and many more to follow, we hope to have settlement offers within the next few months. 

We are thrilled to announce that we have achieved a significant victory for one of our clients. We successfully settled a claim for a remarkable £3,100, accompanied by an additional £750 in legal costs. Our client had faced the unfortunate situation of their landlord failing to protect their deposit in a government-approved scheme. The resolution was met with great satisfaction from our client, reflecting our commitment to ensuring their rights are protected and upheld.

In line with our dedication to securing the best outcomes for our clients, we are currently immersed in a high-value claim that stands out from our typical cases. Our determination to advocate for our client’s best interests remains unwavering. We understand the importance of this claim and the potential impact it holds for our client. Rest assured, we are sparing no effort to navigate through the complexities and intricacies of the case, aiming for a favourable resolution that aligns with our client’s needs.

At Barings Law, our mission continues to revolve around ensuring fairness, transparency, and protection for our clients. We’re incredibly proud of our team’s accomplishments, and we appreciate your ongoing support.