www.legalfutures.co.uk/latest-news/divorce-is-not-a-blank-cheque-for-litigation-judge-warns
A woman with a severe head injury, took out a litigation loan to fund her solicitors divorce fees, the total amount of which is just shy of a million pounds. How could her solicitors have allowed this to happen? From experience, of that particular firm of solicitors THEY will have used a loan company with whom they have a pre existing "partnership agreement", if it's the one they have used in the past, their source of funds is shadowy, they have been investigated and sanctioned by the FCA on more than one occasion. I have no idea if she would have been made aware of this, or that the chosen loan partner of that firm is in a very new, relatively unregulated, and complex area of finance.
The solicitors have got a million in the bank, her ex has to pay half a million, and she has to pay the other half a million debt.
Interest payments will be at least 9%, on what she owes, servicing the debt will cost her AT LEAST £27k a year, £2,500k a month, about £100 a day. Her settlement of £75k a year will be depleted to under £50k by interest on the debt, her only way out of the debt is to sell the family home, and the solicitors will still be charging her for every contact with the loan company they make at least £500 an hour.
She is not alone, this type of lending is becoming more and more common, it is, IMO predatory, I've seen some pretty bad cases of solicitors selling this type of financial product to vulnerable women, I'm one of them, but this is the absolute worst I've seen so far.
If you read this, or if you know her, please do ask her to PM check out FB for Divorce Litigation Lending thread, if you are also a victim of this sort of lending, you are not alone, it's not your "fault" you were not stupid, you were likely misled and exploited by predatory lending practises. There are protections, there need to be more.