The Six Fatal Secrets

SIX FATAL SECRETS YOU NEED TO KNOW!

There has been an increase in awareness that UK Businesses have been subjected to mis-selling of Business Energy Contracts by Brokers AND Suppliers for the last 24 Years!

There are numerous competitors out there now, who are only out to line their own pockets and do not care about the implications or ramifications that unsuspecting Businesses will be subjected to. These competitors also do not possess the necessary funding to proceed with any claims. These competitors also do not possess the necessary funding to proceed with any claims.

What isn't so clear is there are many expensive pitfalls if they don't use a reputable organisation such as Energy Reclaims.

There are 6 Fatal Secrets that YOU need to be aware of, to ensure YOU don't fall foul of these Predators when looking to pursue your rightful Claim for Mis-sold Business Energy Contracts!

YOU HAVE BEEN WARNED!

AVOID USING THE SERVICES OF A COMPANY OR LAW FIRM THAT

Only Recovers The Broker Fees
They are significantly under-settling your claim! Energy Reclaims will extract all profits from the Supplier, along with the Broker Commissions, resulting in your Claim(s) being worth up to four times more! Over time, Energy Reclaims will hold these Law Firms accountable for Professional Negligence due to their under-settlement of claims.
Cannot Precisely Calculate Your Claim Value To The Last Penny
Estimating your Claim Value will NOT suffice when it’s time to issue the Letter of Claim or initiate Court Proceedings. Energy Reclaims employs a unique proprietary calculation and algorithm that has been rigorously tested and accepted by Solicitors, Barristers, Litigation Funders, Insurance Companies, King's Counsel, and HM Courts. Energy Reclaims has successfully settled numerous Claims using this formula!
Will Include You in a GLO (Group Litigation Order)
These types of Claims can take years to resolve—typically up to 7 years. If there’s an appeal, it could take additional years in the Court of Appeal, followed by more time in the Supreme Court, resulting in a potential wait of 10-12 years for payment. Will your company still be around then? Can you afford to wait that long to recover YOUR money? On average, claims settle within 8 months with Energy Reclaims. We have gathered evidence showing that claims against certain Suppliers could be resolved within weeks, NOT months! Energy Reclaims has developed a more efficient approach for Multiple Claimants, allowing these claims to navigate the Legal System like a standard individual claim, adhering to typical timelines. This method is especially suited for smaller value claims, allowing them to be aggregated for a more economical and cost-effective process, ensuring that anyone with a claim, regardless of value, can recover the money that is rightfully owed!
Will Require You to Waive Your Rights and Protections by Placing Your Claim in a SPV (Special Purpose Vehicle)
You will have ZERO control over the settlement amount of your Claim, and you will waive your rights and protections provided by the SRA (Solicitors Regulatory Authority). The SPV is the Client of the Law Firm, NOT you! If the Solicitor Firm makes a mistake or acts against your best interests, you cannot file a complaint with the SRA, and you have NO recourse if the SPV—an actual third-party business that owns your Claim—decides to withhold payment and keep the settlement funds. There are many cautionary tales publicly available about these SPVs settling Claims and absconding with the money! Your only recourse would be to file a breach of contract claim, IF the SPV still exists!
Will Impose Additional Fees Under a Separate Business Agreement
A Law Firm can charge you a maximum of 49% of any Settlement. To circumvent this, the Claims Management Company or Introducer may impose additional fees under a separate business agreement. In many instances, these agreements are mis-sold and unenforceable, as they often fail to disclose that they receive fees and/or commissions from the Law Firm, resulting in them being paid twice! These separate business agreements are currently under investigation, as they can be considered "Champertous" under the law, meaning that one party cannot have a financial interest in another party's Claim. A reputable Law Firm would inform their Client that the Separate Business Agreement is unenforceable and advise against making any additional payments. Unfortunately, not all Law Firms act ethically! Energy Reclaims does NOT charge additional fees and collaborates only with thoroughly vetted, reputable Law Firms that share our ethical standards. Our Panel of Law Firms will NEVER charge more than a 30% Success Fee on any Settlement, along with any unrecovered costs and disbursements.
Will Handle Small Value Claims Using a Model Where the Client Signs a LFA (Loan Funding Agreement) or CCA (Consumer Credit Agreement) – THIS IS THE MOST CRUCIAL WARNING YOU NEED TO KNOW!

Law Firms will generally utilize some form of Funding to move forward with these claims, such as Litigation Funding or Practice Funding. Here’s a simple explanation of how they operate:

Conventional Litigation Funding

This involves Third Party Funding (which is often expensive), where the Law Firm must provide information at various stages to the Funder to obtain approval for withdrawing funds to cover specific costs and disbursements. Reputable Law Firms will carefully monitor running costs at different stages and ensure that any drawdown from the Funder is proportional, offers value for money, and is used only when necessary. Additionally, during the costing process for each claim, good Law Firms will make sure that the Client is likely to receive a favorable return from any settlement, considering all costs and disbursements involved.

In contrast, a subpar Law Firm will maximize drawdown amounts at every opportunity, often concealing unrecoverable costs within recoverable costs—such as hiding Acquisition Costs and WIP (Work In Progress, which covers staffing and other expenses) within an “Expert Report Fee.” They may also receive up to 50% commission from ATE Providers, especially those that require immediate payment rather than deferring it until the claim settles. I must emphasize that while there is nothing inherently wrong with this, it should be fully disclosed to the Client, which, as you can imagine, often does not happen! Naturally, I am NOT happy with any of these unethical and unprofessional practices!

IN ADDITION, some Law Firms are securing large initial drawdowns from the Funder but lack the staff necessary to handle the claims. I know of one Law Firm that has been gathering cases since October 2022 and has NOT even sent a single “Letter Before Action” or “Letter Of Claim.” It’s astonishing how they have managed to get away with this for so long! The Clients they have brought on board are already liable for 100% of the exorbitant drawdowns taken from the Funder, and they have hundreds of Clients signed up under these conditions! This particular Law Firm’s Energy Claims Division is being operated by a NON-Qualified trainee Solicitor and is managed from an unregistered office in a completely different city from the actual Law Firm!

Operational Funding

This essentially functions as an “Overdraft Facility or a Loan,” giving the Law Firm the authority to determine how and when the funds are utilized.

In both cases, reputable Law Firms take responsibility for the Interest Repayments, incorporating them into their profit and cost model. In contrast, a BAD Law Firm transfers that responsibility to the Client, maximizing their own profits while eliminating any risk to themselves. This is typically accomplished by having the Client sign a LFA or CCA.

Let me give you a LIVE example:

A Client was introduced to us after already engaging with a highly disreputable Law Firm. The Client has three claims worth £15k, £20k, and £25k, totaling a possible recovery of £60k. (Keep in mind that the Law Firm in question is only pursuing Broker Commissions, resulting in significant under-settlement.)
The Law Firm has already drawn down £30,000 for each claim, totaling £90,000 from the Funder they use. Due to the Loan Funding Agreement the Client signed and the prolonged time taken to advance their claims, they are now in the 70% repayment bracket.
As it stands, the Client is contracted to pay the Litigation Funder 70% of the drawn amount, which equals £63,000. If the Law Firm needs to issue Court Proceedings, they will likely draw down another estimated £30,000 for each claim, totaling an additional £90,000 to cover Court Fees, Barristers' Representation, more WIP, etc. This would mean the total drawdown across the three claims would reach £270,000.
The Client is contracted to pay the Funder 100% (since it is currently taking 10 months to get a hearing, placing them in the highest repayment percentage bracket).
When the claims settle, let’s say at full value of £60,000, the Solicitor would take £21,000 plus £4,200 VAT, totaling £25,200 (35% Settlement Fee). This leaves a balance of £34,800, which the Client will NOT receive! The Agreement the Client signed states that any recovery goes to pay the Funder first before the Client sees any remaining funds from the settlement. Instead, they will receive a bill for £180,000!
Additionally, the original Introducer who connected the Client to this BAD Law Firm has reportedly forged the Client’s signature, which means I can help them escape this situation! However, I am concerned for over 3,000 other Clients this Law Firm has signed up under the same model, along with other firms using the same Funder!

When this occurs with clients engaged with that Law Firm or any other Firm using the same Funder or a similar type of Funder, the reputation of any Introducers will be ruined, along with the Law Firm's reputation and the integrity of the Legal Profession itself will be irreparably harmed.

We reporting these Law Firms and the Funder to the SRA, FCA, Law Society, AND I will be going to the Press!

How can these practices be considered fair, ethical, or professional? The Law Firms entrusted with protecting clients’ interests are fully aware that this will happen, yet they allow it to continue without forewarning the client! During the costing process, it should be clear that claims below a certain amount would ultimately NOT serve the clients’ best interests, and the Law Firms should have pursued alternative options or refused the case altogether.

Energy Reclaims stands up for the rights of the Client. WE WILL NOT collaborate with anyone or any entity that could even remotely allow any of the above situations to arise!

PLEASE DO NOT FALL VICTIM TO THESE PREDATORS!