Litigation Loans for Divorce - Has anyone used one of these and what are your experiences of them?

[Highlandheath]

I took a litigation loan out to fund paying for my divorce. My ex went for the most expensive Divorce lawyers in the UK. The litigation loan I took out was secured against the house, which I have to sell. Interest rates are astronomical, despite this being a secured loan, so no risk to the lender. Right now I am finding it almost impossible to make sense of what was done by the lawyers (I had to get other lawyers, recommended by them, to give me independent legal advice) it seems 6 loans were taken out, which would normally run for a year, however they all appear to start and end at the same time, and I appear, but can't get clarity on dates the money was actually transferred to the lawyers, to have been paying interest on money BEFORE I received it. The loans are personal, but dealt with by the commercial department. Has anyone had experience of litigation loans, and are you clear on how they were managed? If you are in a similar boat to me, I'd like to hear from you, these loans are possibly being mis sold, to women in severe emotional and financial difficulties. What's your experience?

Click on Topics and then scroll down to Legal Matters

Thankyou...

Just posted on the legal board, feel free to comment.

JUst adding myself to this thread off the back of the other one - surpsried to find I commented on this back in January 18.

Hello
I have read details of loans with horror. I decided to self represent at 14 hearings needed to divide 4 assets (no children). I know exactly how Aldershot court has ignored legislation, making unlawful orders, as I have all the transcripts and confirmation (on transcript) from a High court judge. It simply makes orders which abuse one parties rights. I was threatened with 'what happens in court stays in court' Sadly for District Judge James, what has happened in court is fraud, is recorded and is of public interest. It took 14 hearings to ruin my finances, because court breached its rules and also allowed ex and his legal team to breach rules, without penalty. They both colluded in my abuse in and out of court. Finally Aldershot court ordered that a sale of my co-owned property be carried out by my ex and his solicitor, (purchaser being a solicitor) knowing that I wanted to purchase the property myself to keep my only income. Court manipulated a fraudulent sale to deduct the fraudulent costs it was letting my ex run up in this court to stop me from either being the purchaser or seller. Ex's solicitor is also a deputy district Judge, beware of these - there is a list of them on I think a website called 'What do they know'. There is no way a court will question vexatious litigation from a fellow judge.

Court's and solicitors install a sense of fear of self representing to force you into paying the legal trade for unnecessary expensive time wasting. The actual process of hearings are simple, court forms are all simple and can be downloaded from HM courts website. Applying to the court for a hearing to make an order is simple and very empowering. It costs nothing if you have no income or £155 if you have. If you have a solicitor/barrister it costs £1000's. I have read many accounts of litigants being so stressed they cannot represent their case. Consider that this is exactly what all parties want, you cannot think straight, so are easy to manipulate. Do not let them win, they are bullies, stand up to them. It is your legal system not just theirs to use for income. I was traumatized for the first two hearings, although I kept on stating my case, and thankfully this is now recorded. I intend using transcripts to assist those forced to go to court. I believe I have all the tricks of the trade documented. I also intend providing them for a judicial review of unlawful orders/Judgements/Judges Finding of Fact etc.

If I could rewind I would have asked the court to ensure it had turned on the tape at the start of every hearing and informed it at the start I would be applying for the transcript and therefore wanted all Judgements and orders to refer to and reflect the transcript, i.e. not what suited the represented party. Court would then have to consider whether its 'justice' was suitable for exposure. Also I could have filled out a simple application form for my case to be transferred to another court, on the basis that I would not get a fair hearing in this court. At the end of the day the courts are condoning abuse and solicitors perpetrate it knowing they are 'protected'. Solicitors are only getting away with what courts permit.

Hi Daisy

New trick to share along with

Solicitor you want takes initial instructions from you then defers case to colleargue who does not have rights of audience in court

These barristers come judges you talk about...yep had one too on the other side...charming gent...cleverly accused me of their crimes to deflect their tactics.

They must think we are all thick and know nothing about human behaviour and projection.

I was called a vexatious litigant. Here's a thing... I was perturbed by this and checked with the Attorney General if I was on their named and shamed list...surprisingly I am not! Clean as a whistle .

However the list has not been updated since '2017' I wonder why...could it be because they know their judges are using this charmingly damning phrase to enable them to give power to the loan holder of sales of property as they need an excuse to breach to your rights!

Daisy I think there could well be a loan on the side of your ex. What you report has a familiar theme...sale to the solicitor ...so DM me if you want a chat.

Hi Daisy, you are so right, I was too terrified to represent myself, and the lawyers really contributed to that, the words they used were "it will be a blood bath" an abusive ex in the mix made it even more terrifying, the process of both sides waiting outside the court together before being called in gave him the opportunity to insult and harass me - the solicitors and barrister didn't tell him to stop, they just scuttled in ahead of me, leaving me at the back, and most vulnerable! But after a point, once they had spent every penny I had available I had to represent myself. Self representing I have got exactly what I want in court every single time...... But putting that aside, without the litigation financing I would have gone to different solicitors, just said "ok, I can't afford you, I will go somewhere else". That would have been fine! One of my friends had a very similar case to mine: hidden assets, etc, her divorce cost a hefty £50k, but she retained the house for herself and her children, and got security and a clean break. The Judge praised the good work of her legal team. My divorce? £500k..... The Judge criticised the legal team for "unjustifiable" costs - but they walked off with the money anyway ... There is a serious problem with the family courts. The Transparency Project, with journalist Louise Tickel is campaigning for more visibility, you may wish to contact her and work with her. One of my most costly bits of rubbish from a judge was an order for a valuation of everything in the house - it's not as if there were Canalettos on the wall - the ex made a list which included A PAIR OF MY BOOTS to be valued.... can you believe that? ridiculous, right? But the Judge approved it! The cost of the lawyers batting the list backwards and forwards, the professional valuer (who was seriously gobsmacked - even in probate he had never had to value a pair of boots!!!!) why didn't the lawyers fight hard and point out it was just an extension of abuse, a fishing expedition, a way to disrupt my life and my children's? Because it made so much money!! And as for his side, he had taken lots of valuables from the house when I chucked him out, but those were not on the valuation list, why? because I wasn't prepared to descend to his level, and get dragged into a costly tit for tat.... I'm in court again soon self representing (not by my choice, I add, I hate it, and want to just get on with my children and my career, but lawyers need to be fed!!!) and will take your tip re ensuring the recording machine is on and working - very good advice.

Hi Suzanna

I have read your story on here and I’m going through same thing! With three children and 3 years of litigation later and £400k legal fees I don’t have my ex made me get a loan out for litigation against my home! Sound familiar???

Hi Mummy Bear, I'm not called Suzanna (it's a nice name though!). I've pm'd you... Lets speak off line.... And have a hug and an assurance that you are no longer alone in this... Will do all I can to help! xxx. Keep on reaching out ... x

£400k legal fees I don’t have my ex made me get a loan out for litigation against my home

£400k and 3 years!!!!!!! Sounds strange. Some high profile Celebrity Divorces are sorted more quickly than that. Maybe your Ex is dragging it out or your advisers are milking? Maybe both?

How was your Ex able to force you to get a loan? Surely it was your decision whether or not to take a loan?

@MissedTheBoatAgain and Mummybear19

There are 2 sides to this from a consumer perspective

Those who are sold the loans- increasingly copious evidence of...

Misselling via a sophisticated abuse of vulnerability. A product designed and borne to exploit.

The terms in these loans are staggering. I have seen them. It is conman stuff....what terrifies me is that solicitors must be so desperate they have not allowed their own ethics to guide them.

Sold by way of solicitors who distressed (yes that is what divorce does to people btw, or abused...yes, people have reasons to get divorced it is not done on a whim) who people may trust.

There are even percentages in there on ratios to ensure there is a 3 x multiple at any one time left in the pot, that is so it (the loan) cannot go beyond a third of the value of the property...hey ho Judge Mostyn...there we go...the reason why your shocking case...the gross leaching of costs of 920k from one couple is due to this formula being rolled out. Of course the solicitors would not agree anything...nor did they in my case. I got beautiful, frameable letters from my chocolate fireguard of a solicitor as he pretended to sypathise with my position.

For God's sake...I said to the Judge a 2 year old could have done a better job on these finances than the solicitors.

So...there we have it...look at your property value, then divide by 3. This is where the loan consortium can and will max out to if they are not stopped.

If you have not done so already and it is still rumbling through the courts I suggest you hot foot it down to court and alert he Judges formally in writing and get receipts from court. Get them to photocopy the letter you hand in and date stamp it and give it back to you as a receipt. Write that you are being financially abused in the court process and the loan terms are the reason.

Mummybear19 may not have known what else to do...? How unscrupulous was her solicitor? Were the risks truly explained? Was the smallprint read and understood?

I would bet the answer is no??

Good advice and trust no one, least of all your solicitors..

Oh and I forgot to say...in my case, I was on the receiving end of the loan and not the loan applicant...it was not declared AT ALL to me by anyone.

In my case it was used as a tool to get control of sale of assets and misappropriate some of them as they were hidden from proper marketing. So they did not get proper exposure to the market...the full title of the property was not shown on the details and all of this by the lovely Strutt & Parker. Do not rust these guys...there business structure is about as dodgy as Novitas, Ratesetter etc.

Strutt & Parker are RICS agents. Shame on them.

Part of the consortium to deprove you of your assets, force a sale and get their mates to buy it.

Trust is in short supply atm.

If your court order NAMES a particular estate agent be very very suspicious. They will not be acting for you but for the investors in the loan.

Undersell....within their matrix of contacts. Whoops, just got a steal there, do you think anyone noticed?

Apologies for typos...rushing to get to work...I forget I actually have a job!!!!

From speaking with other women who have been advised to take these loans by their lawyers, the loan companies do seem to have a buyer lined up for the property against which the loan is secured from the outset... It's an end to end arrangement, from what I'm hearing. The client is confused, frightened and penniless, have no experience of law or divorce, and trust their solicitors to manage things in their best interests. The loans are unaffordable at the outset, the solicitors bill pad, the divorce process is long and complex, interest escalates, the solicitors having got to the top of the amount they can charge (based on that 3 way split, Hiddentruth has highlighted 1/3 to the solicitor, 1/3 to the loan company and 1/3 to the divorcing couple) the property then goes into the hands of the loan company who seamlessly transfer it with or without the help of friendly estate agents, at a knock down price, to an investor in that loan company.... Quite possibly the person or corporation or both who put the money up for the loan via the loan company in the first place. And I know the lawyers on this thread are likely to say "that could never happen" in reality it should never happen, but it has and it does.... There is a due diligence duty the solicitors have failed in - full FCA regulatory approval was not given to two of the major lenders in this area prior to 2016 and 2017 with good reason, the FCA had serious questions relating to "illegal, potentially criminal" practices on the part of the two market leaders, and to "lack of transparency".

FCA has updated it's regulatory guidance re "lending which is predictably unaffordable from the outset" and addressing the issue of loan companies which do not take into account the negative impact on the consumer of the loan, as long as the loan still profits them....www.fca.org.uk/publication/policy/ps18-19.pdf

Oops sorry thought I was typing on private thread 🙈