PPI Claim Genre Explained
Payment Protection Insurance was sold on many
products and loans in the UK through brokers who
have not disclosed their commissions. In many
cases, the Undisclosed Commissions (UDCs) were
disproportionate. In some cases, the insurance was
not fit for purpose. A PPI claim relates to the non-
disclosure of significant commission on a Payment
Protection Insurance policy, which can lead to an
"unfair relationship" under Section 140A of
the Consumer Credit Act 1974. The basis for such
claims is primarily the Supreme Court's 2014
judgment in Plevin v Paragon Personal Finance
Ltd, which established that undisclosed
commission could make the loan relationship
unfair. Claims also rely on Section 32(1)(b) of the
Limitation Act 1980, which allows claims to
proceed if the relevant fact (the commission)
was deliberately concealed, and the claimant
discovered it later with reasonable diligence
The Litigation Claim Asset Lifecycle
A Litigation Claim is established when a claimant
contracts with a Legal Representative to recover
undisclosed commissions. In many cases, this only
occurs when a claimant realises they have been the
victim of business practices that do not meet
regulatory transparency.
The Legal Representative will collate all of the
required evidence for the claim, the contracts, the
Letters of Authority, banking information and
communications and then assess the claim to
ensure that it meets the strict litigation criteria.
Any claims that do not meet the criteria are
rejected. An independent expert rating agency
then further assesses and rates the claims to
ensure that they can be successful in court and
meet the insurable standards. At this point an LCA
is issued to finance the claim.
There are estimates that there are close to £37
billion of PPI claims already settled with a further
£50 or £60 billion more to be processed. Any
established and evidenced claim now settles within
6 - 18 months or so historically as the case law is so
well established.
The LCA is attached to the claim, not the Legal
Representative. Only one funder is attributed to
each LCA. The assignment rights for the Claim
remain with the LCA funder until paid in full and
closed at settlement including principle, interest
and fees. The LCA has an agreed interest rate paid
against the funded amount. 100% capital cover and
coupon is placed immediately.
Legal Representative and Claims Management.
The PPI Claims are processed by E-Chambers Direct
Limited, a leading UK Chambers and Claims
Management Company, through their proprietary
AI systems which are fast, have no errors and issue
the claims letters along with detailed pleadings for
the barristers should this be necessary.
The cost of processing these claims has been the
barrier to processing for the remaining PPI claims.
AI now offers this controlled-cost solution to reach
the remaining billions in claims. In most cases, PPI
Claims settle before court as there is little defense
to undisclosed commissions, and where the
alternative is an expensive court process through
the fixed-fee regime set by the courts which will
increase the costs to the defendants significantly.
Upon funding, the LCA Claim will proceed through
the Claims Process which is directed down the
Court established Fixed Fee Regime in the Fast-
Track, Intermediate and occasionally Multi-Track
channels. This is important as it establishes the
legal fees specific to the claims. This increases the
commercial pressure on the defendants towards
settlement before court proceedings, especially
when there exists case law, Supreme Court
Judgement and clear evidence of undisclosed
commissions leaving no room for a defence. There
is now a firm litigation and negotiation schedule in
place to expediate the litigation.
Reporting
Each LCA has its own data which is supplied to each
funder through their own dashboard covering all of
their funded cases. The status and progress of each
claim is therefore transparent in real time.
PPI Claim Investment Table Summary
LCA
Price
Market
Interest
Rate
Damages Value
(Average)
Legal Fee
Value
Insured Cover
Ratio
Success
Ratio
Payout
Estimate
£200 Market
Price
£2,000 £1,136
100% Plus
12%
Coupon
5.5:1 >80% 6-18 Months
PPI Claim Litigation Claim Asset Data Sheet
LITDAQ ©Copyright 2025
3LCA Asset Summary
Transaction Type: Issuer packages Litigation
Contracts with principal insured and revenue
confirmed from Court Fixed Fee regimes,
boasting a 80% likelihood of successful
settlement or litigation.
Key Parties:
Issuer: E-Chambers Direct Limited
Seller & Servicer: E-Chambers Direct Limited
Arranger: LITDAQ Exchange and Rivermead
Auditor
Joint Lead Managers: Legal Representative
Security: A-Rated Insurer
Guarantors: None (100% Insured)
Notes Issued: None
Claim Success Ration: >80%
Cover Ratio: (Claim Asset Value to Funding
Committed) 5.5:1
Class A: GBP single LCA or bundles (or larger on
request), Fixed APR (Variable and Negotiable),
Rated A by Insurance, Green by Litigation (>80%
success forecast), Matures 36 months max,
average 6 to 18 months.
Class A pays interest upon settlement of the
claim. No interest is paid if the claim fails.
Security: Investors benefit from security cover:
Capital Cover Insurance with coupon.
Assignment rights
Key Risks:
Issuer Default: None, 100% insured. Investor
principal is insured, relying on court-directed
fixed fees per claim.
Subordination: None - all are primary fee-
collecting claims.
Market Risk: None - value established by
investment for claim disbursements costs only,
100% covered by insurance.
Borrower Set-off: None
Conflicts of Interest: None
STS Compliance: Transaction should meet EU
"Simple, Transparent, Standardised" (STS)
standards.
Risk Retention: None to principal. Claim success
risk at court is mitigated by Supreme Court
Decisions, established case law, and a track
record of successful claims through the courts.
Claim Success Ratio
This ratio is determined through the independent claim report and is important as it is the indicator as
to whether the claim will succeed or not and therefore receive the legal fees expected.
Cover Ratio
This ratio reflects the claim value (the legal fees due from successful claims) and the amount of
financing committed to the claim.
PPI Claim Litigation Claim Asset Data Sheet
LITDAQ ©Copyright 2025
4The Next Steps.
We are currently issuing LCAs for PPI Claims. We invite qualified investors to submit a bid for the
purchase of Class A PPI LCA bundles. Your bid should specify your desired interest rate, which will be
submitted for acceptance to the issuer.
Email for an application form: PPI@e-chambers-direct.co.uk
Disclaimer
This document and the information contained herein are for informational purposes only and are not
intended to constitute, and should not be construed as, an offer to sell or a solicitation of an offer to
buy any securities or other financial instruments. This document does not constitute legal, tax,
investment, or other professional advice.
The information, opinions, and analyses contained in this document are based on a draft provided to
us and may be subject to change without notice. While the information presented is believed to be
accurate as of the date of publication, we make no representation or warranty, express or implied, as
to its accuracy, completeness, or reliability. Any forward-looking statements or projections are based
on assumptions and estimations, and actual results may differ materially. Investors should not rely on
these statements as a guarantee of future performance.
This investment involves significant risks, including but not limited to the potential for loss of the
entire investment. Prospective investors are strongly advised to conduct their own due diligence,
consult with legal, financial, and tax advisors, and carefully consider their own financial situation
before making any investment decision.
Qualified Investor Notice
This document is intended for and should be viewed solely by persons who are "Qualified Investors"
or "Professional Investors" as defined under applicable laws and regulations. By reviewing this
document, you represent and warrant that you are such a qualified investor with a full understanding
of the nature of the investment and the risks involved. This includes having sufficient knowledge and
experience in financial and business matters to be capable of evaluating the merits and risks of the
prospective investment independently.
This document is not intended for retail investors. The terms of any investment will be governed
solely by a definitive agreement executed between the parties.
PPI Claim Litigation Claim Asset Data Sheet
LITDAQ ©Copyright 2025