Slater & Gordon – update as hopefully warning was heeded - it is going to get worse

Comments

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   Daniel Victor

   13 July 2015, 18:34

   I’ve seen quite a few Slater and Gordon ads on the telly recently.No idea whether that will pay off for them.

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   Claims Specialist

   14 July 2015, 01:20

   I think you will find that the organisation who gave the advice to pay ATE premiums at a higher level than necessary i.e. QPP, will be held responsible for the mis-selling and thus be liable for fine/repayment.

   However, if S&G continued the process then they too will have a problem.

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   Tom Winnifrith

   14 July 2015, 01:24

   The organisation responsible was QLS ( now sold to S&G) not QPP PLC. I think it is far less cut & dried as to who picks up the tab – if there is one – than you imply.

   If QLS is fined for historic crimes what warranties did QPP give?

   T

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   Drake

   14 July 2015, 08:52

   Regarding the ATE article linked to above, claimants were paying £245 for ATE for RTA cases, which were the bulk of cases. So a bit excessive maybe, but not £425. Only 17k and 37k QLS RTA cases had settled in 2013 and 2014 (Slater presentation), and the ATE premiums are only paid by the claimant upon successful settlement. Any fine, whether SGH or QPP have to pay it, will not be remotely as high as £75m. I’d be surprised if it was even double digit £millions.

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   Pauly Walnuts

   14 July 2015, 18:04

   The ATE premiums may only be ‘paid’ on successful settlement, but they are most definitely signed up by the claimants on inception. Quindell were boasting of 10,000 rta cases per month in mid 2013 so regardless of the Slater presentations there appears to be a major potential banana skin for either QPP or SGH here.

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   Drake

   15 July 2015, 03:51

   I don’t know where you got 10k RTA cases per month in 2013 from. I’ve never seen that in any of the investor documents. Possibly this was a future projection or a mid 2013 quarterly not monthly figure. Or you may be thinking of the June 2014 QLS slides (no longer available) where all RTA case types were to be cut from H1 14 levels to c.8 or 9k per month (they seem to have actually cut intake even further than planned in H2 to save cashflow).

   In any case the same May 2015 Slater presentation I referred to earlier says (slide 22) that RTA case intake was 54k cases in 2013 (but some of those pre-LASPO) and 80k cases in 2014 (and only a majority of those will be low value RTA portal were the ATE premiums are most questionable). That fits within the QPP 2014 interim slides which have all case type intake numbers of 60k for Q2-Q4 2013 and 82k for Q1-Q2 2014 (when the proportion that were RTA reduced). Of course there will also be a few 10s of thousands of RTA from Q1 15.

   I only heard this 2nd hand but David Currie was asked about the ATE issue at the EGM and said he thought any fine would be in the £2 to £5m range (I don’t know who he thought would have to pay it).

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   Pauly Walnuts

   15 July 2015, 07:45

   The 10,000 cases per month figure was from the August 2013 investor presentation, page 25 QLS.
   It may no longer be on the website but I downloaded a copy.
   The part referring to it is here……

   Quindell Legal Services, after significant contract wins in 2012 and HI 2013 now processes circa 1-in-5 claimant claims in the UK.
   Based on Run Rate of c.10,000 volume in Order in-take in July, the potential run rate
   for HII is c.60,000 revenue earning cases with a correspondent Waterfall Effect of addiPonal revenue for Quindell Health Services.

   So what your saying is the total cases for 2013 were actually less than QPP said H2 would be.
   Maybe that’s one of the public statement the FCA are looking into.