Why Engaging Claim Management Companies Can Be Risky: A Cautionary Tale

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In the world of legal claims, the promise of a 'no-win, no-fee' agreement can seem like a beacon of hope for those seeking justice. However, it's essential to remember that not all that glitters is gold, as evidenced by the recent ordeal faced by former clients of SSB Law.

A Yorkshire-based claimant recently shared his harrowing experience with the Sheffield-based firm. He signed up for a cavity wall insulation claim on a no-win, no-fee basis after a claims management company approached him. He was assured that he wouldn't have to pay a penny as his claim was covered by after-the-event insurance. 

However, he was hit with a £38,000 legal bill years later, despite his claim being discontinued in 2022.

The claimant now lives in constant fear of losing his home, a stark contrast to the assurance and peace of mind he sought when he first engaged the claims management company. His story is sadly not unique.

SSB Law went into administration last month, leaving debts estimated at £48 million. It has emerged that numerous former clients across the north west, north east and Wales have received demands for cost payments on long-discontinued claims.

This distressing situation raises serious questions about the practices of some claims management companies. The primary concern being the false sense of security provided to clients through assurances of 'no-win, no-fee' agreements and insurance coverage.

These companies operate across the board in areas such as SDLT rebate claims, financial services and products, personal injury employment matters, eg unfair dismissal, criminal injury, housing disrepairs, and certain industrial injuries benefits,   

While this situation is still evolving, it serves as a stark reminder of the potential risks involved when engaging claims management companies. It's crucial for the public to do thorough research, ask probing questions, and seek independent advice before signing any agreement.

In conclusion, while 'no-win, no-fee' agreements may seem enticing, they are not always as straightforward or risk-free as they appear. The unfortunate experiences of SSB Law's former clients underline the importance of caution when engaging claim management companies.

The best advice is that you should contact a solicitor specialising in the area concerned and seek independent advice.   Many of the solicitors acting in this area offer  ‘no win, no fee’ arrangements.  If you are determined to go with a claims management company about SDLT claims please read these articles first: https://www.tax.org.uk/stamp-duty-refunds-too-good-to-be-true and https://www.gov.uk/government/news/new-homeowners-warned-over-tax-refund-claims .   Please also check that the company is registered with the Financial Conduct Authority: https://register.fca.org.uk/s/