This agreement is between:

• Hidenda Legal LLP (“we”, “us”, “our”), and
• [CLIENT FULL NAME], date of birth [DD/MM/YYYY], of [CLIENT ADDRESS] (“you”, “your”).

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1. Key definitions

In this document:

• “Charges” means what we charge you for the work we do on your claim, including any costs that the court or your opponent orders to be paid to you.
• “Claim” means your PCP / motor finance mis-selling claim, whether or not court proceedings are started, as described in section 3 (“What we will do”).
• “Compensation” means any money or financial benefit you receive because of the Claim, including any settlement payment, goodwill payment, refund, balance reduction, rebate, interest, costs or other payment – and any part of that which is used to reduce an outstanding balance.
• “Costs” means our Charges, our Disbursements and any VAT that applies.
• “Disbursements” means payments we make on your behalf, for example court fees or expert fees.
• “Fast Track claim” means a claim which is, or is treated as, allocated to the Fast Track for costs purposes.
• “Intermediate Track claim” means a claim which is, or is treated as, allocated to the Intermediate Track for costs purposes.
• “Multi-track claim” means a claim which is, or is treated as, allocated to the Multi-Track for costs purposes.
• “Small claim” means a claim which is, or is treated as, allocated to the Small Claims Track for costs purposes.
• “Ombudsman Fee” means any fee that must be paid to an Ombudsman body to lodge or progress your complaint/claim.
• “Opponent” means the lender, broker or any other party from whom you seek Compensation.
• “Lien” means our right to keep your papers, documents, money or property until everything you owe us under this agreement is paid.
• “Start Date” means the date on which we send you written (usually email) confirmation that we accept your instructions on these terms.
• “Win” means that some form of Compensation is recovered for you, whether in cash, write-off, rebate or other financial benefit.
• “Lose” means your Claim is finally rejected, dismissed by the court, or discontinued on our advice and no Compensation is recovered.

2. Nature of this agreement

How this agreement operates depends on how your Claim is resolved:

1. If your Claim is resolved without issuing court proceedings
   • Our agreement is a non-contentious business agreement within section 57 of the Solicitors Act 1974.
   • Our fees are then charged in line with the “Non-contentious business” section below.
2. If we need to apply to court or issue proceedings
   • Our agreement becomes a Conditional Fee Agreement (CFA) under sections 58 and 58A of the Courts and Legal Services Act 1990 and the Conditional Fee Arrangements Order 2013.
   • The “Conditional Fee Agreement” section will then apply to how we charge.
3. What this agreement is not
   • This is not a “contentious business agreement” under the Solicitors Act 1974.
   • This is not a “damages-based agreement” under the Courts and Legal Services Act 1990.

3. What we will do (scope of work)

Under this contract we will:

1. Investigate and pursue your Claim for Compensation or other relief arising out of alleged mis-selling of a motor finance agreement.
2. Decide, in our discretion, whether to issue or defend any application to the court (for example, for pre-action or non-party disclosure) and make any data protection applications needed for the Claim.
3. Negotiate with your Opponent about liability, Compensation and costs, including any assessment of costs by the court.
4. Take steps to enforce any judgment, order or settlement reached in your favour, where we consider it appropriate.

4. What is not covered

This agreement does not cover:

• Bringing or pursuing a complaint to the Financial Ombudsman Service or any other Ombudsman or statutory compensation scheme.
• Any appeal from a judgment or order unless we expressly agree in writing to cover that work and confirm how it will be funded.
• Any Ombudsman Fee or similar charges imposed by a scheme or third party.
• Any other legal dispute or claim you may have (for example separate claims against a dealer) unless we agree to act for you on separate terms.

5. Our responsibilities

We will:

• Act in your best interests at all times, subject to our overriding duties to the court and our regulator.
• Keep you reasonably informed about progress and give you our best advice about whether to accept any settlement offer.
• Advise you about any significant risks that may affect the outcome or costs of your Claim.

6. Your responsibilities

You agree that you will:

1. Give us clear, honest and prompt instructions so that we can do our work properly.
2. Not ask us to act in a way that is improper or unreasonable.
3. Not deliberately mislead us or the court.
4. Co-operate fully with us, including providing documents and information when requested.
5. Not negotiate or agree settlement of the Claim, directly or indirectly, with your Opponent without our involvement.
6. Not instruct another representative in relation to the Claim unless and until this agreement has been terminated.
7. Authorise and require your Opponent to pay all Compensation directly to us, so that we can:
   • deduct our Charges, Disbursements, any applicable VAT and any ATE insurance premium; and
   • send any remaining balance of Compensation to you.
8. Ensure that any Compensation received by you in error is immediately notified to us and held for our benefit pending instructions.
9. Pay any Disbursements or Ombudsman Fees you have agreed to, if they are not recovered from your Opponent.

7. The nature of your claim

Your claim concerns:

• A motor finance agreement which you entered into; and
• Commission or other financial arrangements between the lender and the broker/dealer which may have created a conflict of interest and resulted in you paying a higher interest rate than you otherwise would have.

We will not automatically pursue any other losses or claims you may have against the dealer or lender (for example, quality of the vehicle) unless we agree to do so in writing.

If your Opponent is not willing to resolve matters by agreement, we may need to issue court proceedings. We will decide whether court proceedings are appropriate or commercially viable for us to take on. If we do issue proceedings, we may sign the court documents on your behalf. By instructing us, you authorise us to do this and to include a statement of truth based on the information you have supplied. Providing accurate information for that purpose is extremely important.

In some cases we may advise that your complaint would be better dealt with by the Financial Ombudsman Service. If so:

• We will not act for you in pursuing that complaint.
• This agreement will come to an end at that point.
• We may signpost you to a not-for-profit organisation that can assist you.
• If you then go on to receive Compensation, you agree to pay us for the work carried out under this agreement up to the point it ended, on the “Non-contentious business” basis.

Where interest is included as part of your Compensation, your Opponent may deduct basic rate tax and account for it to HMRC. Depending on your circumstances some or all of that tax may be reclaimable. You authorise us to share your details with a third-party tax reclaim provider if we consider that appropriate. Their fee for handling any tax reclaim will be 48% (including VAT) of any tax recovered, taken from any tax refund they obtain.

8. Time limits

There are strict legal time limits (limitation periods) for bringing claims. If a claim is not issued at court in time, it may be permanently barred.

The law on limitation in motor finance mis-selling claims is still developing and not completely settled. Based on the law as it currently stands, we believe that:

• Some aspects of the Claim may need to be brought within six years from the start of the finance agreement; and
• Other aspects may need to be brought within six years from the end of the agreement.

We will not issue court proceedings purely to protect or extend a limitation period. If you are concerned that your Claim may become time-barred, you may need to issue proceedings yourself or seek separate legal advice.

9. How long will the claim take?

It is not possible to say exactly how long your Claim will take. Timescales depend on:

• How quickly the lender responds;
• Whether liability is admitted or disputed; and
• Whether court proceedings become necessary.

Straightforward claims may settle within months; more complex or defended claims can take a year or more. We will keep you informed of significant developments.

10. Our fees – general points

• You always have the right to pursue the Claim yourself directly, free of charge, without representation.
• We will act for you under a “no win, no fee” arrangement.
  • If you Win, you pay our Charges and Disbursements as described below.
  • If you Lose, you do not have to pay our Charges or Disbursements (subject to any exceptions set out in this agreement).
• We will always seek to ensure that the share of Compensation you receive is greater than the share we take in fees.
• VAT will be added at the rate applicable at the time of billing.

11. Non-contentious business (no court proceedings)

If your Claim is resolved without issuing court proceedings, our Charges are calculated by reference to the total Compensation as follows:

We will charge the lower of the percentage figure and the maximum total charge for the relevant band.

VAT will then be added at the applicable rate.

If we apply to court or issue proceedings, the “Conditional Fee Agreement” provisions below replace this charging structure.

12. Conditional Fee Agreement (CFA) – court cases

12.1 Small Claims Track

If your Claim is, or is treated as, a Small Claim for costs purposes:

• We charge a fixed fee of £1,500 + VAT, capped at 40% + VAT of any Compensation recovered.
• If you become entitled to fixed or prescribed costs under the Civil Procedure Rules, you agree that those costs (paid by your Opponent) are payable to us.

12.2 Fast Track, Intermediate Track and Multi-Track / standard or indemnity costs

If your Claim proceeds on the Fast Track, Intermediate Track or Multi-Track, or you become entitled to standard or indemnity costs, we charge for our time at hourly rates:

Most claims under £100,000 are subject to the fixed recoverable costs regime (Part 45 CPR). This means:

• Even though our Charges are calculated on an hourly-rate basis,
• You may recover only a fixed lump sum in costs from your Opponent, and
• That contribution is likely to be significantly lower than our actual Charges.

The fixed amounts depend on the value of the case, the track allocation and the stage at which it concludes. Full details are set out in Part 45 and Practice Direction 45 of the Civil Procedure Rules (available online), and we can explain how these may apply to your case if you ask.

Our hourly rates are higher than the guideline hourly rates used by the courts (currently £272, £233, £189 and £134 for the equivalent grades). If costs are assessed, the court may limit recovery to those guideline rates, meaning you will only recover part of our Charges from the Opponent. You will remain responsible for any shortfall.

13. Overall cap on what you pay us

To make sure you retain the majority of your Compensation:

• In every case, we limit the total amount you personally have to pay towards our Charges and Disbursements (after crediting any costs paid by your Opponent) to a maximum of 40% + VAT of the Compensation you receive.
• If our actual Charges and Disbursements would be higher than this, we waive the difference.
• This cap does not apply to any ATE insurance premium, which is payable under a separate contract between you and the insurer.

We are allowed to retain any interest your Opponent is ordered or agrees to pay on your costs.

If you Lose your Claim, you will not have to pay our Charges or Disbursements. In the normal course of a Small Claim, you will also not usually be ordered to pay your Opponent’s legal costs unless you have behaved unreasonably.

We do not accept payment in cash or by credit card.

14. Adverse costs and ATE insurance

There are situations in which:

• You could be ordered to pay some or all of your Opponent’s costs, particularly in non-Small Claims; and/or
• You could be left out of pocket for Disbursements (such as court fees) if you Lose.

To protect you against these risks we strongly recommend that you take out After the Event (ATE) legal expenses insurance with a UK-regulated legal expenses insurer with whom we have an arrangement.

In summary:

• The policy is designed to cover your exposure to opponent’s costs (where applicable) and certain Disbursements (e.g. court fees).
• The premium is only payable if you Win and is taken from your Compensation at the end of the case.
• If you Lose, the premium is self-insured – you will not have to pay it.
• The premium is fixed and does not increase depending on when your case settles.
• We have delegated authority to put this insurance in place on your behalf quickly.

You agree that, if we proceed under a CFA, we may require you to take out an ATE policy with our nominated insurer as a condition of us acting, and you authorise us to arrange it for you.

We are not insurance brokers and do not provide advice on the wider insurance market. Other products may exist which may be cheaper or structured differently. We do not receive commission from the insurer.

We are not directly regulated by the Financial Conduct Authority, but we are allowed by the Solicitors Regulation Authority to carry on insurance mediation activities (arranging and administering such policies).

14.1 Current premium scale for disbursements cover

The following table shows the current ATE premium that applies for court fee and related disbursement cover in Small Claims:

If your case ceases to be a Small Claim, we will provide details of any revised cover and premium for your consideration.

15. Ending this agreement

15.1 Your right to terminate

You may end this agreement at any time by telling us in writing.

• If you end it within the 14-day statutory cancellation period, you will not have to pay our Charges or Disbursements (subject to the note in section 16 about starting work early).
• If you end it after the 14-day period, you agree to pay us on the basis that your Claim would have been successful on that date. That means our Charges are calculated in line with the “Win” scenario that would then have applied.

15.2 Our right to terminate

We may end this agreement by giving you reasonable notice if:

• You do not comply with your responsibilities;
• We no longer consider your Claim to have reasonable prospects of success;
• You reject our reasonable advice about accepting or rejecting a settlement offer;
• We consider the value of the Claim to be uneconomic for us to pursue (for example, where it is unlikely to exceed £500); or
• You become insolvent (bankruptcy or individual voluntary arrangement).

If we terminate after the 14-day cancellation period because you have not complied with your responsibilities, you agree to pay us on the basis that the Claim would have been won as at the date we end the agreement. In practice this will mean paying us £1,500 + VAT.

If we terminate after the 14-day period because you reject our settlement advice, we will calculate our Charges as if you had gone on to Win on the date of termination.

If we recommend that you pursue your complaint via the Financial Ombudsman Service or another scheme, this agreement will end and we will not act for you in that process. If you later obtain Compensation through that route, you agree to pay us for the work done under this agreement up to termination, assessed in accordance with the non-contentious business charging structure.

If you die before the Claim is concluded and your personal representatives choose to continue the Claim using us, they will be bound by this agreement and liable to pay our Charges in the event of a Win.

Once this agreement has ended we may apply to come off the court record in any proceedings.

16. Consumer Contracts Regulations information / early work

We are required to give you certain information under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. Where relevant, that information is set out in these terms.

You have a 14-day statutory cancellation period starting on the day after you receive our written confirmation that we are acting for you.

You expressly ask us to begin work on your Claim immediately, before the end of that 14-day period. You understand that:

• If you cancel within 14 days before we have completed the services, we may be entitled to charge a reasonable amount for work done.
• If our services are fully performed within the 14-day period, your right to cancel under the Regulations will be lost.

17. How to cancel within 14 days

To exercise your right to cancel within the 14-day period, you must clearly tell us (by phone, email or post) that you wish to cancel.

Our contact details for cancellation and general correspondence are:

• Firm: Hidenda Legal LLP
• Postal address: Sherwood, Oxford Road, Frilford Heath, Abingdon, OX13 5NW
• Telephone: 0333 006 2636
• Email: [email protected]

You may, but do not have to, use the Model Cancellation Form at the end of this document.

If you send your notice of cancellation before the end of the 14-day period, the cancellation will be treated as in time.

We record telephone calls so that there is a clear record of any instructions or consent you give.

18. Complaints

Your case will be dealt with by our experienced claims team, overseen by a qualified solicitor.

If you are unhappy with any aspect of our service or our bill, please contact us in the first instance:

• Post: Hidenda Legal LLP, Sherwood, Oxford Road, Frilford Heath, Abingdon, OX13 5NW
• Telephone: 0333 006 2636
• Email: [email protected]

We operate an internal complaints procedure, a copy of which is available on request. We will aim to resolve your complaint within 8 weeks.

If you are not satisfied with our final response or we do not respond within 8 weeks, you may be able to refer your complaint to the:

Legal Ombudsman
   PO Box 6806
   Wolverhampton
   WV1 9WJ
   Tel: 0300 555 0333
   Email: [email protected]
   Website: www.legalombudsman.org.uk

Time limits apply to complaints to the Legal Ombudsman (currently within six months of our final response and within one year of the act/omission or your knowledge of it).

If your complaint is about our bill, you may also have a right to apply to the court for assessment of the bill under Part III of the Solicitors Act 1974. The Legal Ombudsman may decline to consider a complaint about a bill if you have already applied to the court for assessment.

19. Miscellaneous matters

• If we stop acting for you, we may (in appropriate cases) exercise a lien over your file until our costs are paid. We will try to do this in a way that does not unreasonably prejudice your position.
• Files may be subject to confidential audits or reviews as part of our quality and regulatory obligations. If you do not want your file to be used for this purpose, please let us know.
• After the matter is concluded, we may retain your file (other than original documents you have asked us to return) for six years, after which we may destroy it.
• We may charge a reasonable fee (currently at least £30 + VAT) for the retrieval and/or copying of archived files if you or another firm request them.
• We are required by our regulator to hold professional indemnity insurance. Details of our insurer and territorial cover are available on request.
• This agreement and any disputes arising from it are governed by the law of England and Wales, and the courts of England and Wales shall have exclusive jurisdiction.
• Our privacy policy, explaining how we use your personal data, is available at: https://hidendalegal.com/privacy-policy. Hidenda Legal

20. Regulatory information (“The small print”)

Hidenda Legal LLP is a limited liability partnership registered in England and Wales with registered number OC434886 and is authorised and regulated by the Solicitors Regulation Authority (SRA number 819140). Solicitors Regulation Authority+1

Our registered office and principal address is:

Hidenda Legal LLP
Sherwood
Oxford Road
Frilford Heat
Abingdon
OX13 5NW

General contact details:

• Telephone: 0333 006 2636
• Email: [email protected]

Details of the professional rules which apply to us can be found on the SRA website.

21. Model cancellation form

(Complete and return this form only if you wish to cancel the contract.)

To: Hidenda Legal LLP, Sherwood, Oxford Road, Frilford Heath, Abingdon, OX13 5NW