Terms of Engagement – ClaimLion Law
1. Our commitment to you
1.1 ClaimLion Law (‘CLL’ or ‘the Company’) (a trading style of BlackLion Law LLP) will assess your claim and pursue your claim for Compensation against your Account Provider. We inform you that you have a right to pursue your claim yourself without attracting a fee and/or seek further advice prior to instructing us. We will act in your best interests at all times to process your claim and obtain settlement of your claim for you. We will only keep you updated of significant changes to the status of your claim, unless you request otherwise.
1.2 In some instances, we may need to pursue an application for the settlement of your claim to The Financial Ombudsman Scheme (“FOS”) or The Financial Services Compensation Scheme (“FSCS”) which we will undertake at no extra cost to you.
1.3 We will pay you the Compensation that has been recovered on your behalf, minus the Service Charge which is payable by you to the Company.
1.4 If your claim has been transferred to us from a third party, you may elect to appoint another party to handle your claim if you inform us in writing within 14 days of your receipt of these Terms of Engagement.
1.5 A Partner at this firm, Negar Yazdani, will be responsible for the overall supervision of your matter and day to day conduct of the claim will be undertaken by a caseworker under her supervision and as notified to you.
1.6 This agreement does not cover going to Court. If we believe your case does have to go to Court to obtain adequate compensation we will inform you of this and will discuss this with you and will set out different terms of acting.
2. Your commitment to us
2.1 You appoint us as your sole representative and you agree not to appoint anyone else to pursue your claim for Compensation while we are acting for you. In the instance that you instruct another party in relation to your claim, you may be deemed to have terminated the contract and we reserve the right to charge you either the Service Charge which would have been payable at the conclusion of the claim, or the termination fee as set out at paragraph 7 of these Terms and Conditions, whichever is the greater of the two.
2.2 You will send us any relevant correspondence that you may have received from the Account Provider as soon as possible and you will inform us of any correspondence that you may receive from the Account Provider while we are processing your claim.
2.3 You will promptly provide all information we may request from you and you will ensure that all information you provide to us is true, accurate and not misleading. We recommend that all documentation and correspondence which you send to us, is sent by recorded delivery. You will promptly inform us of any matters which may materially affect your claim. Should you fail to provide the information required in a reasonable time frame we reserve the right to charge you a reasonable fee (based on hourly rates) subject to a maximum of £500 plus VAT.
2.4 You will not pursue the claim personally, contact the Account Provider, discuss settlement or enter into any negotiations about your claim with your Account Provider, while we are acting for you. It is important that you agree not to contact the Account Provider directly in relation to your claim (unless we consent to you doing so or direct you to) as this may affect any ongoing negotiations. In the instance that you contact your Account Provider directly to discuss settlement of your claim with them, you may be deemed to have terminated the contract and we reserve the right to charge you either the Service Charge which would have been payable at the conclusion of the claim, or the termination fee as set out at paragraph 7 of these Terms and Conditions, whichever is the greater of the two.
2.5 You authorise us to contact the Account Provider and collect any Compensation on your behalf.
2.6 If the Account Provider sends you the Compensation directly (by cheque, directly into your bank account or applied towards any other account you may hold), you agree to notify us and pay our invoice immediately.
3. How the Company will collect its fees and fee sharing
3.1 On the successful settlement of your claim for compensation, CLL will charge you a Service Charge of 20% plus VAT on the Compensation awarded to you.
3.2 If the Compensation includes reduction of an existing debt and/or outstanding overdraft, the Company will calculate the Service Charge against the full amount of Compensation which includes the reduction of the existing debt and/or overdraft outstanding. CLL will take into account any cash settlement that you may also have received.
3.3 Examples of CLL’s fee structure for a claim are set out at paragraphs 3.3.1 to 3.3.3 below:
3.3.1. Compensation is cash award – Mr A is awarded £3,000 compensation. Mr A will receive £2,280 and pay a fee of £720 (Service Charge of 20% (£600) plus VAT (£120)).
3.3.2 Compensation for a claim includes cash award with future fee reduction – Mrs B is awarded £3,000; £2,000 of this award will be deducted from the outstanding balance on her outstanding overdraft. Mrs B will receive a reduction of £2,000 from her overdraft and a reduction on her monthly fee payments as well as a £1,000 cash award. CLL’s fees will be calculated on the total reduction on her overdraft and her cash payment but not the reduction on her monthly instalments. Mrs B pays a fee of £720 (Service Charge of 20% (£600) plus VAT (£120)).
3.3.3 Compensation is used to offset some of the outstanding overdraft – Mr & Mrs C are awarded £3,000 in compensation for mis-sold packaged bank account, which is applied by their Account Provider to reduce the overdraft. Mr & Mrs C reduce their overdraft by £3,000. Mr & Mrs C will pay a fee of £720 (Service Charge of 20% (£600) plus VAT (£120)).
3.4 CLL will deduct its Service Charge from any Compensation that CLL receives from your Account Provider on your behalf and will pay you the balance. If Compensation is paid by the Account Provider directly to you, which is likely in the instance of a successful claim, you agree to promptly pay CLL’s Service Charge.
3.5 When an offer for Compensation is obtained, which in CLL’s reasonable opinion is fair and reasonable having regard to the FOS and FCA guidelines and the relevant timescales, and that offer is rejected by you, then CLL reserves the right to charge you the Service Charge, which would have been payable had you accepted that offer in line with CLL’s advice.
3.6 You agree to pay the Company the Service Charge immediately in cases where a reasonable offer of Compensation has been sent to you (by the Account Provider or us) and you have not within 28 days of receiving such an offer, either returned to us the Account Provider’s acceptance form, or a letter rejecting the Account Provider’s offer.
3.7 Where we make a claim on behalf of two (or more) joint account holders, we may recover the Service Charge from any or all of them.
3.8 Where any compensation obtained on your behalf includes compensatory interest, those sums are taxable at source and will likely be deducted by your Account Provider. The Service Charge will be calculated on the basis of the amount of compensation which is paid to you by your Account Provider, including the sum due to HMRC, whether or not this is deducted by your Account Provider.
3.9 If you were introduced to us by a third party we may have entered into arrangements with that third party to pay them a referral fee. Different arrangements exist with different introducers. But we typically pay them 50% of the fees you are liable to pay us. This fee does not have any additional effect to you and we remain independent solicitors with a duty to you alone. We are happy to give you further information about the fee payable in your particular case if you request it.
4. Non Payment of Invoice
Invoices are payable within 7 days of the date of issue or the date you receive the Compensation, whichever is the later. The costs of any telephone call and invoice reminders may be added to the outstanding debt as follows: £10.00 + VAT – second and subsequent written reminder, £35.00 + VAT – second and subsequent telephone reminder, £50.00 + VAT – letter before action. If any invoice remains outstanding for 28 days or more, we reserve the right to refer your debt to third parties for collection. Via this agreement you consent to us running credit checks on you for the purposes of tracing and debt recovery.
5. Debt Recovery
The costs of any County Court action to recover an invoice debt from you (approx. £25 – £410) will be added to the outstanding debt together with any additional legal costs, Court costs and statutory interest, pursuant to Section 69 of the County Court Act 1984 until the debt is paid in full. The costs of third party collection agencies may also be added to the outstanding amount.
6. Authorisation and the duration of this agreement
On signing your Letter of Authority you authorise CLL as your sole representative to correspond and act on your behalf in any dealings with your Account Provider, the FOS and the FSCS (and or their authorised agents). This agreement starts on the date upon which we receive your signed letter of authority from you and will continue until the successful completion of your claim or alternatively termination as set out below.
7.1 The Company reserves the right to cancel this Contract at any time. There will be no fee payable if we tell you that your claim is unlikely to succeed and you have fulfilled your obligations (as set out in this Contract). We will notify you promptly in writing if we decide not to pursue your claim for Compensation.
7.2 If you send us written notice of cancellation within 14 days of signing any Letter of Engagement, we will not charge you a fee. You can do this by sending us a letter by fax, post or email. You may also use the cancellation form below. To meet the deadline it is sufficient for you to send your communication concerning your exercise of the right to cancel before the cancellation period has expired. You can cancel without having to give any reason.
7.3 If you terminate this Contract after you have received an offer of Compensation from the Account Provider, the Company will charge you the Service Charge.
7.4 If you terminate this Contract prior to an offer of Compensation, the Company may charge you a reasonable fee (based on hourly rates) subject to a maximum of £500 plus VAT.
7.5 As set out at paragraph two above, the instruction of a third party other than CLL or the direct negotiation of a settlement which your Account Provider in relation to your claim will constitute a termination of your agreement with this firm. In either circumstance we reserve the right to charge you a termination fee of £500 or the full Service Charge on conclusion of the claim, whichever is the higher.
8. Force Majeure
We will not be liable for delay or failure in performing any of our obligations if such delay or failure results from events, circumstances or causes beyond our reasonable control.
9. Data Protection
10. Misleading Information
We reserve the right to charge you for any costs incurred by us if any information provided by you is misleading or contains material omissions which result in us providing a service to you, which we would have declined to provide, had we been in possession of the full information. In such circumstances a fee of £500 plus VAT will fall due.
11. Assignment and Sub-Contracting
You agree that we may assign or sub-contract any of our rights and obligations under the Contract to any other party as long as they are on terms which are no less favourable to you.
12. Notices and complaints
Any notice given to us must be in writing. These Terms of Engagement may change from time to time and as advertised on our website www.claimlionlaw.com. Whilst we endeavour at all times to provide an efficient and professional service, please contact us if you have any concerns or queries about our service. In the event that there should be any aspect of our service with which you are unhappy, you should first contact other the person dealing with your claim or the Partner to discuss the problem and your concerns will be investigated. If you wish to make a formal complaint, a copy of our “Complaints Policy” is available on request. This will not involve any extra cost to you.
If you are not happy with our final response, or if we take more than 8 weeks to resolve your complaint without informing you that we need extra time to deal properly with the complaint, then you can contact the Legal Ombudsman who will independently investigate your complaint and if it agrees that our service has been unsatisfactory, it can ask us to apologise to you, give you back any documents you are entitled to, do more work for you, if this can put right what went wrong, refund or reduce your legal fees. You can contact the Legal Ombudsman by writing to them at Legal Ombudsman, PO Box 6806 Wolverhampton WV1 9WJ. Their website is: www.legalombudsman.org.uk or you can contact them on: 0300 555 0333. Alternative complaints bodies such as small-claims-mediation.co.uk exist which are competent to deal with complaints about legal services should both you and our firm wish to use such a scheme. We do not generally agree to use such a scheme.
“Client” or “you” means you as a customer of the Company.
“Company”, “we” or “CLL” means ClaimLion Law (a trading style of BlackLion Law LLP, regulated by the Solicitors Regulation Authority under number 518911).
“Compensation” means the total monies and the full value of benefits offered by the Account Provider, whether as Compensation, as a gesture of goodwill or otherwise, arising from any claim made by the Company on behalf of the Client for mis-sold PPI or other financial irregularity.
“Contract” means the contract between you and us consisting of these Terms of Engagement.
“Account Provider” means your bank, account Provider, loan company, broker or other person, including FOS or FSCS.
“Service Charge” means the fee payable by you to the Company of a percentage of any Compensation which you receive from your Account Provider, plus VAT including any disbursements that have been incurred by us in processing your case, such as fees we pay to your Account Provider (typically £10) in order to obtain information relating to your claim or bank charges where we have incurred bank charges in transferring payment to you by telegraphic transfer at your request.
Schedule One: Service Charges applicable to each type of claim
The 20% rate of VAT is based on the current rate of VAT which is determined and changed from time to time by HMRC. The rate of VAT which will be applied is that which is applicable at the date on which any sums fall due.
Fee before VAT
Total fee payable (as percentage of total claim amount)
Please write to CompanyName, CompanyAddress1, CompanyAddress2, CompanyAddress3, CompanyPostcode, or email CompanyEmail with the following information requesting a cancellation of your contract. Name, Address, Signature (if by post) and Date.
This email is sent on behalf of ClaimLion Law (a trading style of BlackLion Law LLP, a limited liability partnership registered in England & Wales, authorised and regulated by the Solicitors Regulation Authority under SRA number 518911). A list of the members of the LLP is displayed at our registered office at Berkeley Square House, Berkeley Square, London W1J 6BD. The contents of this e-mail and any attachments are confidential to the intended recipient, may be legally privileged and must not be disclosed or used by anyone other than the intended recipient. Unauthorised use, disclosure, distribution or copying is prohibited and may be unlawful. If you are not the intended recipient please do not use or publish its contents, contact ClaimLion Law immediately on email@example.com then delete the e-mail. Contracts cannot be concluded with us nor service effected by e-mail. Any opinion or advice to clients is given subject to our terms of business. E-mails are not secure and may contain viruses. ClaimLion Law may monitor traffic data. Further information about us is available at www.claimlionlaw.com and www.blacklionlaw.com.