Over the past couple of months, we’ve seen a rise in third-party legal firms contacting our customers about repairs claims. These companies don’t work with us and if you do engage with these companies, you could end up losing thousands of pounds.
These ‘no win, no fee’ arrangements often turn out to be nothing of the sort, with charges buried in lengthy legal contracts. You could be charged thousands of pounds if you leave the agreement, and even if successful, the payment to you, the customer can be quite small compared to the solicitor’s costs.
If the claim is unsuccessful, you can be liable for legal fees, which could total several thousands of pounds.
Here’s some examples of where the outcome has affected our customers:
Example 1
A customer initiated a disrepair claim, and we subsequently received a letter of claim from their solicitor. In our response, we advised that we were not liable for the alleged disrepair, as we had not been made aware of any issues at the property prior to the claim. However, once the issues were brought to our attention, we acted promptly, and all necessary repairs were carried out without delay.
Despite this, the customer still chose to take the matter to court, with a hearing scheduled. A few days before the hearing the claim was withdrawn.
This could be because they were uncomfortable attending court, or perhaps their legal team has reviewed the case and advised that it’s unlikely to succeed.
Either way, by choosing to withdraw at this stage, the customer is now responsible for covering legal costs, which total £8,753.
Example 2
In May 2023, we received a letter of claim. A building surveyor inspected the property and found that many of the reported issues were incorrect. The customer said she hadn’t instructed the solicitor and didn’t recognise most of the defects listed - such as a broken pond (which didn’t exist), guttering problems, or damp and mould.
We made an offer to the solicitor which was rejected and they ignored our concerns and threatened legal action. The customer then told her Neighbourhood Coordinator she didn’t want to continue with the claim. When she tried to withdraw, the solicitor warned she’d owe £7,000 in legal fees unless she went ahead. They claimed she had a strong case and would receive compensation, but she only wanted her repairs done.
The customer, who was dealing with health issues, contacted her local councillor. The councillor reached out to us, and the Neighbourhood Coordinator gave the customer a link to the Solicitors Regulation Authority (SRA) to file a complaint. No further contact was received from the solicitor, and the claim was closed.
These are just two examples of cases that didn’t go to plan.
If you do have an ongoing repair or you need some advice, we’re here to help, contact us by phoning 0191 525 5000 or message us directly on Facebook.
