Based on your questions and feedback, we have drawn up the following FAQs which cover most queries or uncertainties. Simply click on a question below to be taken to its answer. If you have further questions, in the first instance please contact your Claims Management Company. Alternatively, you may email email@example.com or call us on 01584 778044.
Q: I have already received partial compensation from the PPI vendor. Can I still be involved in your group litigation?
A: Yes. It is highly likely that you can still join, as long as your Claims Management Company can provide us with the required documentation. RGL Management (RGL), working with our legal team, has identified arguments and legal causes of action that are likely to mean that we will be able to pursue full redress on your behalf if you have only received partial compensation.
Q: Is this a no win, no fee action?
A: Yes. RGL will arrange funding to cover all costs and will ensure that After the Event (ATE) insurance is provided, so that our claimants will not have to pay any adverse costs awarded in the event that the claims are unsuccessful. There is no cost at any point in our process, unless and until your case is successful.
Q: What is the Litigation Management Agreement (LMA)?
A: The LMA is the formal “no win, no fee” agreement between you and RGL. It authorises us to act on your behalf in the analysis, management and pursuit of your claim against the defendants. It also allows us to conclude the funding and insurance arrangements that must be finalised before legal proceedings can be commenced.
Q: In the event that my claim is unsuccessful, what are the chances that the ATE insurance will not pay out?
A: ATE insurance covers against the risk of a legal claim being unsuccessful and the claimant having to pay the defendant’s costs. We are aware of only a handful of examples where ATE insurers have refused to pay out over the last 10 years while thousands and thousands of ATE policies have been issued. Non-payment has usually related to the Court finding the claimant dishonest in bringing the claim in the first place and/or to have given dishonest evidence in Court. In the context of a group claim, if one claimant dishonestly brings a claim or gives dishonest evidence, he or she would likely not be protected by the ATE insurance. This would not impact the other claimants insured under the policy.
Q: What if my claim is unsuccessful, and the ATE insurance value is not sufficient to pay out the defendants’ costs?
A: We and the legal team will be monitoring the updates provided by the defendants about their legal costs. To the extent it became apparent that the amount of ATE insurance purchased (the “limit of indemnity” or “LOI”) was likely to be insufficient, the insurers would be requested to increase the LOI. It is very likely they would do so, unless the merits of the claims had materially decreased. In this unlikely scenario, i.e. where the LOI may be exceeded in the future and the merits have materially decreased, the litigation would be brought to a conclusion such that the incurred costs of the defendants did not exceed the LOI. Claimants will not therefore be exposed to having to pay the defendants’ costs.
Q: If RGL decides not to progress a claim on my behalf, will there be any cost to me?
Q: If the amount of funding is not sufficient to cover the litigation, will I have to pay?
A: No. The funder and the lawyers will work closely together in terms of monitoring the on-going legal spend on the litigation. To the extent that it ever becomes apparent that the funding may be insufficient, the funder would consider whether to fund an additional amount (it is likely that it would, given its, by then, significant investment) or RGL would bring in an alternative funder. In any event, the legal team would not be permitted to continue to rack up costs and exhaust the existing funding with no additional funding in place. They would either stop work or, much more likely, continue to work on a deferred fee basis until additional funding is put in place.
Q: Is it possible that the litigation could be successful but the amount awarded isn’t sufficient to cover some aspects of the costs incurred, so that I might have a financial liability?
A: No. There is no such situation. It will be an explicit provision of both the funding agreement and the ATE policy that the funder’s return and the ATE insurer’s premium will be payable only if, and to the extent, there are funds available to pay. If the litigation is successful, but the return is not sufficient to pay the funder and/or the ATE insurer, their respective entitlement to fees, uplifts and premium will be expressly limited to the litigation recoveries that are available.
Q: What documentation will you need from me?
A: It is essential that you sign the RGL LMA and return it to your Claims Management Company, as they have requested. They will advise you if they need any further documentation, in addition to what they already have on file, in order to pass your potential claim on to RGL.
Q: My PPI seller has already rejected my claim for compensation. Can I still be involved in your group litigation?
A: Depending on the exact circumstances, it is possible that you could still have a successful claim using RGL’s ‘no win, no fee’ group litigation. If your Claims Management Company provides us with your signed LMA, and all the required documentation, our legal team will be able to assess your potential claim.
Q: How much will I receive if the claim is successful?
A: You will receive not less than 52% of total recoveries in respect of your claim. In setting the share to be deducted from any recovery as more particularly described in Clause 4 of the RGL LMA (see also the example below). This takes into account:
- A 20% share for your CMC in return for their introducing you to the litigation and obtaining and providing the required documentation and information.
- A 28% deduction to cover the costs of litigation, funding charges, ATE premiums and RGL litigation management services. Litigation represents significant financial risk for funders, insurers, lawyers and RGL, which is reflected in this charge
Q: Can you provide me with an example of a payment to the Claimants in the group litigation approach?
A: Example of payment to Claimants (as per the LMA) from the Recovery of losses under the RGL group litigation approach:
|Claimant’s share of gross litigation recovery||£2,000|
|Claim Management Company commission – 20%||£400|
|Funding and litigation expenses including ATE – 28%||£560|
|Claimant’s 52% share of gross litigation recovery||£1,040|
Q: How long will my claim take?
A: As you know, the ability to complain and seek compensation through the administrative PPI scheme or the Financial Ombudsman Service terminated on 29 August 2019. This was a straightforward administrative process for mis-selling complaints made directly by customers or via Claims Management Companies (CMCs).
As explained in RGL’s Litigation Management Agreement, the process RGL is engaged in to win further compensation for claimants is an English court legal action on behalf of a large number of claimants – a group action.
RGL’s solicitors will issue a legal claim (previously known as a writ) on your behalf. As you will appreciate, the legal process is neither quick nor straightforward.
Furthermore, the type of litigation we are pursuing is a group legal action. This requires a sufficient number of claimants to be assembled (grouped) against a single PPI provider/lender (defendant) before proceedings against that defendant can begin.
So, the timing of your specific claim will depend upon a number of factors, including:
- How long it takes to create a group of claims to include your claim, against the relevant defendant, which is large enough to issue a group Claim Form, preceded by a formal ‘Letter before Action’(LBA)
- How long it takes the legal team to ensure that your potential claim is valid, and that you have provided all the required documentation
- How the defendant responds when we send the LBA or subsequently issue the Claim Form – whether they have questions about the claims, and whether they choose to defend the claims in court
- Whether the claim has to go before a Judge
RGL and the legal team will be progressing matters as quickly as possible. However, it must be understood that this process will take months, not weeks. And the time taken will vary by Claim Form.