Like many other small businesses, we have been experimenting with advertising our business on different social media platforms of late.
We promote our services on the platforms where our potential customers spend their time which means Facebook, Instagram, TikTok, LinkedIn etc. but in doing so, had no idea the vitriol we would unleash.
Before I go on, I should say that we are in the business of helping customers get redress or compensation for mis-sold pensions, investments, car finance, secured loans and other disputes involving financial services companies. We are a small team of hard-working professionals based in Altrincham, Cheshire who are trying to make a living, enjoy being of service and only take on claims that have been qualified by our team.
For every ten clients who approach us for claims guidance, we will tell six that we see no reason to pursue a claim with us. The four where we see grounds to investigate usually result in three submitted claims, the majority of which we’re pleased to say (not all) are successful. We have great relationships with our clients, and we enjoy what we do.
So, we were not prepared for the response we received the minute our first Facebook ads went live, it took less than a minute before the ‘comments’ appeared, comments like:
“Sharks”, “Ambulance Chasers”, “Scam”.
I don’t hear people shouting, “Flat tyre chasers!” In AutoTyres or “Accident Vultures” in body shops. So, what’s the deal?
Why do people have such a visceral reaction to companies in our profession making a living?
It’s not like we don’t make it clear to people that they can, if they choose to, make a claim on their own. Across the board we do this because it’s a regulatory requirement.
I appreciate that we live in a DIY generation where a few YouTube videos might give you confidence in hanging a door, tiling your bathroom or hanging a shelf. Yet despite this, every handyman, builder and joiner I know has work backed up for months.
Do you see people screaming at a joiner for charging somebody to hang a tv?
Of course, you don’t.
So why give Claims companies such a hard time?
I believe it may come down to three things:
1-No-win no-fee
Most of us when dealing with claims, work on a damage based or contingent fee agreement, which is what is commonly known as no-win no-fee.
It makes sense that we can only offer this type of agreement when we have a reasonable level of certainty that the claim we are pursuing for you will be upheld.
Is there a misconception that no-win no-fee means you will end up paying most of your claim awarded to the solicitor?
Firstly, all of our fees are clearly disclosed prior to anybody engaging with us.
The most we have ever charged is 35% of the claim awarded and, in some cases it’s less than 10%. Fees vary based on the complexity and value of the claim, (see our Terms and Conditions for details).
To use the joiner analogy, it’s gonna cost more to fit wardrobes than to hang a shelf, you price the job accordingly, and you get paid when the work is complete. The same is true for us.
However, the reality is that unlike the joiner, sometimes we do the work and we don’t get paid at all, simply because the claims aren’t upheld (for a variety of reasons), and when that happens a lot of the costs involved in pursuing those claims are absorbed by us so the amount we charge on our ‘wins’ has to be enough to cover the costs on our ‘losses’, this is why we can employ professional solicitors to manage your claim without without having to take any financial risk.
Sometimes the only way to progress your claim is to apply through the courts where there are direct costs which will have to be paid such as Court Fees.
When claims are over £10,0000 you will want insurance, specifically After the Event Insurance (ATE), as if we lose and you aren’t insured, you (the client) not us, would be liable to pay the opposing sides costs. These are external costs which we can’t afford to pay for you however most clients never have to pay for their insurance because we arrange funding (at our expense) to cover the cost of the insurance policy.
All of this is in place to make sure that we have the ability to pursue your claim to the fullest extent of the law without you having to risk any of your hard earned money.
2.PPI
The PPI scandal brought claims management companies into the spotlight. Companies made millions of pounds by submitting claims for people which they probably could have submitted themselves.
However, there seems to be a misconception that this was companies preying on people who didn’t know any better, or didn’t realise they could submit a claim themselves.
Whilst in some cases that may be true, in the majority of cases the customer let a professional handle it because they simply didn’t want to either because they weren’t comfortable doing it themselves (don’t want to get it wrong) or because it was simply more convenient (don’t have the time).
There are always those motivated consumers who take pride in doing things themselves and that’s commendable, however it doesn’t make the people who choose to use a service provider ‘victims’. They may simply not have the same priorities, or value their time more, or just prefer letting a professional handle it.
That’s not a reason to ridicule either them or the service provider just because they have different priorities or a different view.
Plus, here are some hard facts!
The PPI scandal was caused by the banks and financial institutions. It was their opportunism that led to the problem and they had to put aside £53 BILLION for PPI claims.
And in spite of years and years of PPI publicity and call centres going through every household in the UK, when it was all over there was still £15 BILLION of PPI left unclaimed that went back into the pockets of banks.
£38 BILLION was put back into the hands of customers and put back into the economy which includes a few PPI millionaires and the people they employed.
How much lower would that figure have been, how much more would the banks have been able to keep, if the PPI companies hadn’t existed?
3-Lack of Understanding
Because PPI was something that a lot of people could do themselves there is now this misconception that that means any type of financial services claim could and should be done without the help of professional solicitors.
We tell every client that they can if they choose to submit a complaint to their service provider, escalate it to FOS or submit a complaint with the FSCS, some people are even comfortable pursing the matter through the court themselves. However, a lot of people simply don’t want that distraction, they don’t want to revisit it, they may find it stressful, they don’t want to get it wrong, or they simply have better things to do, and that’s okay.
Maybe people have envy, that individuals may get compensation?
Maybe they resent us for making a living on the back of people’s financial hardship?
The reality is that in many cases we are dealing with claims that have caused untold amounts of stress for people. They are embarrassed it’s happened to them (when it’s not their fault) and in many cases it’s seriously impacted people’s financial planning for their future and their mental health!
Maybe it’s not just us, is it the Bot culture where people seem to have a negative response to everything online?
Regardless of the ridicule, we’re going to keep doing what we’re doing. Because none of the people who leave those comments see the challenges we face getting people the real compensation they deserve and the difference successful claims make to the lives of our customers.
It’s just a shame that someone who really needs the help may pay attention to what the internet trolls say, wait too long to make a claim and be out of pocket as a result.
If you feel that you may benefit from some help or guidance with any kind of financial services dispute, you can book a free consultation with one of our experts here,
Regards,
Martin
Financial Services Claims Team
HT Legal
