0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

No win for Lorrells LLP in 'no win no fee' ASA complaint

4 November 2015
The ASA have held in their decision of 28 October 2015 that a statement “you will receive 100% of the money that we reclaim on your behalf” on Lorrells’ website was in breach of the CAP Code.
 

Lloyds Banking Group (Lloyds) complained that the above statement was misleading. Lloyds is a lender often subject to PPI claims made under conditional fee arrangements (CFAs). The complaint was made on the basis that Lloyds understood Lorrells claimed their fee directly from the judgment or settlement payment made by the lender to the claimant.

Following the reform of CFAs under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which came into force on 1 April 2013, solicitors cannot reclaim their success fee from an opponent, but must instead claim this from their client. Although this was not discussed in the judgment and there was no suggestion that Lorrells were acting in breach of this act, the ASA may have been influenced by these reforms and the narrowing scope of CFAs. The ASA held that a lack of evidence meant the claim was unsubstantiated, in breach of rule 3.7, and misleading under rules 3.1 and 3.3.

The ASA confirmed that Lorrells’ “lack of response” to the ASA, and “apparent disregard for the Code” breached rule 1.7 (unreasonable delay), and Lorrells were told to respond in future. This serves as a warning to all law firms that they must respond promptly to the ASA, and take care that advertising statements made on their own websites can be substantiated.

Related opinions

Virtual reality payment - it’s all in your head

Alibaba, one of China’s largest technology companies, recently demonstrated VR Pay, a payment service designed to allow virtual reality shoppers to pay for things simply by nodding their head.

View blog

Article 28 Declarations a 6 month window to secure the scope of trade mark protection

Going forward trade marks will no longer be able to provide a broad scope of protection for all goods or services.

View blog

ISPs protected again by the ECHR

Two Hungarian service providers have been relieved of liability for the posting of un-moderated comments about an individual on a news website.

View blog

Glee trade mark infringement appeal - not the end of the series?

Twentieth Century Fox has lost the first stage of its appeal against the finding it infringed Comic Enterprise Limited’s trade mark for a logo.

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up