Asset Finance

Our asset finance recovery solicitors are recognised within the UK as leaders in their field.

We can help captive and non-captive funders, banks, leasing companies, dealers and brokers recover their assets, while supporting their customers during the recovery process. We assist with the recovery of both secured and unsecured debt and have a specialist team that are well versed in the specific needs of different sectors. In addition we have commercial litigation solicitors who can offer their specialist knowledge on asset finance and leasing disputes if necessary when such matters are defended.

Types of asset recovery we advise on

We are familiar with industry-specific requirements and terminology, and can assist those working within different industries in respect of the collection of high volume debt and case-specific debt. We often advise on:

• Regulated and unregulated credit;
• The requirements of the Financial Conduct Authority;
• Complaints handling and resolution services to funder clients.

Our team handles all aspects of asset finance-related disputes and provides a full litigation service. We also handle all types of alternative dispute resolution, and actively promote and utilise mediation as a route to settlement.

Leasing and finance collections

The UK’s finance industry is one of the most sophisticated in the world, with a huge variety of financial instruments that can be used to help consumers and enterprises get access to financial products. These instruments range from simple personal loans through to complex asset finance or asset funding agreements.

Our specialist legal and finance collections advisors assist with a wide range of recoveries and disputes, including:

• Consumer credit loans;
• Contract hire;
• Master hire;
• Hire purchase;
• Conditional sale agreements;
• Finance leases;
• Operational leases;
• Professional practice funding.

Recovery of goods and debt

Many funders struggle with the issues of recovering debts. Or, where the contract relates to the funding or hiring of assets, the ability to recover goods. We often represent asset-based lenders, funders, leasing companies and hirers with recovering both debts and goods.

Recovery in terms of debts often relates to:

• Contract hire;
• Rental;
• Hire contracts;
• Conditional sale agreements;
• Hire purchase;
• Finance leases;
• Operational leases;
• Master rental agreements.

We specialise with the recovery of all types of goods and assets. We often present applications in the County Court, and can seek injunctive relief for the delivery of assets in the High Court.

Additionally, we handle claims whereby third parties seek to enforce liens against goods where bills or other claims have gone unpaid. Our team also includes specialists in scenarios where our clients (as creditors) are subject to title claims, whereby different individuals or companies claim that they are the true owner.

Other asset finance recovery services we offer

Defending Class Actions and Bulk Claims

Many financial institutions and organisations, ranging from asset funders through to banks, have been subjected or exposed to bulk claims or class actions against them. These actions generally arise from perceived shortcomings, either in respect of the documentation or due to an organisation’s adherence to regulatory procedures.

Such proceedings, if not handled correctly, can escalate on an industrial scale with severe results for both the business and its stakeholders. If there is a fault to be rectified, then we can assist with the remediation process. If a claim is unjustified, we represent clients and work with them to defend the action. These claims used to be a rarity, but they are now happening more and more frequently.

Insolvent Recoveries

Dealing with insolvency can be precarious. We assist funders in recovering their assets and advise on security, handling moratorium issues and competing finance claims. Sometimes your customer, whether an individual or an enterprise, may need investigating in the event of suspected insolvency. This can include suspected preferences or disposals at an undervalue.

We have the full backing of in-house insolvency experts as part of this service. We also have access to a network of insolvency practitioners, who can help analyse the actions of debtors. We can give advice on the rights and obligations of creditors in these situations. Part of the insolvency recovery process includes the assessment of each situation on its own merits, and the practical approach to the recovery of goods and or debts. Many creditors incorrectly assume that all is lost in the event of insolvency, but this is not the case.

Consumer Credit, Guarantor and Regulatory Disputes

Financial institutions such as banks, leasing companies, and other regulated entities (insurance companies, brokers, equipment suppliers and independent financial advisors) can sometimes find themselves subject to regulatory scrutiny, disputed documentation and/or challenges to the validity of their guaranty documentation.

Consumer credit disputes

We can advise on the following:

• Enforceability of consumer credit agreements;
• Disputes as to regulatory interpretation;
• Enforcement.

We also carry out due diligence in the context of regulatory legal services.

Guarantor disputes

Many financial agreements between businesses and their customers need to be supported by additional security, such as personal guarantees.

This has led to many disputes concerning the validity of guarantees including:

• Fraud;
• Lack of consideration;
• Retrospective effect;
• Variations to the primary agreement;
• Enforceability.

A minor industry has developed where certain organisations specialise in what they see as getting people out of their financial obligations. We act for a variety of funders in assisting them with the enforcement of both their contractual and collateral contractual rights.

Regulatory disputes

Our team provides advice to ensure that any actions you may take avoid creating a regulatory risk to your business. Our lawyers are experts in all aspects of regulated disputes, including Financial Conduct Authority (FCA), regulatory policies, Consumer Credit Act 1974, Distance Selling and disputes with the Financial Ombudsman.

We specialise in:

• Financial Ombudsman Disputes: We assist businesses in defending complaints made to or with respect to the Financial Ombudsman Scheme, by crafting submissions and defences, assisting with mediation and complaint resolution, and advising on regulatory liability.
• Financial Conduct Authority (FCA) Dispute Resolution: Our specialists can assist with any dispute, complaint or enquiry that is associated with the FCA, and the regulatory landscape.
• Authorisations and Permissions: We often advise clients on the challenges presented by the need for regulatory authorisations and or permissions. We also assist with applications and make challenges if appropriate.

Our experts can help with Section 166 inspections and any issues that may arise as a result of an inspection. And, if requested, we can make representations on our clients’ behalf to regulators regarding complaints or regulatory enquiries.

Secured and Unsecured Debt Recoveries

Many forms of credit involve security. Our team can help you with a full-service offering, which can recover both secured and unsecured debts for your business.

Secured credit may be governed by the Consumer Credit Act 1974, The Financial Services and Markets Act 2000 and the Regulated Activities Orders 2000.

Secured debt collection

Collection procedures for secured debt have to follow statutory provisions, as laid out in the Consumer Credit Act 1974 and as required in the Consumer Credit Source book (the FCA handbook). Many goods can be subject to the “one half rule” or the “one third rule”, where the debtor can hand back goods without charge, or where the creditor must seek the permission of the court before they can take any repossession. We can assist with both recovery of goods actions and injunctive relief.

With certain cases a failure to follow the correct procedures and policies can lead to serious regulatory consequences for lenders and lessors. The press has been full of recent cases whereby many funders have had to make reparations with their lenders and enter into costly remediation programmes. This can destroy a good business. Debt and assets should therefore be recovered in a manner that gives proper regard to the regulatory landscape.

Examples that can apply:

• Secured recoveries: The recovery of assets such as machinery, vehicles, factory equipment, restaurant equipment and all other funded assets. The repossession of land and buildings.
• Unsecured recoveries: All aspects of debt collection that arise from any form of financial instrument. Breach of contract charges, damage charges, settlement charges end of contract charges and reclamation of arrears.

The regulatory landscape

Our asset recovery solicitors are highly experienced in regulation requirements and policies, such as treating customers fairly, affordability and credit worthiness, vulnerable customers and financial distress. It is our mission to protect the commercial, legal and reputational wellbeing of our clients’ interests. We also want to help our clients’ customers feel supported throughout the asset recovery process.