A law firm, acquired by an accountant, embarks on a campaign to assist directors embroiled in Bounce Back Loan disputes.
- Complex Law aims to grow its Bounce Back Loan client base from 50 to between 100 and 500 cases per month.
- The firm highlights systemic errors in the Bounce Back Loan guarantee process as a key issue.
- Clients are being persuaded into director disqualification agreements, impacting efforts to resolve loan disputes.
- The firm plans to recruit more staff to manage the anticipated increase in casework.
A law firm recently acquired by an accountant is set to embark on a nationwide campaign targeting directors involved in disputes related to Bounce Back Loans. Complex Law, under the leadership of Managing Director Tom Blanchfield, aims to expand its current client base from around 50 to a potential 100 to 500 new cases monthly.
The issue at the heart of this campaign is a significant number of small businesses that availed themselves of the Bounce Back Loans during the COVID-19 pandemic, only to find themselves being pursued by the Insolvency Service for payments. Blanchfield argues that many businesses were compelled to close, leading to aggressive actions from the Insolvency Service years later. The service reportedly persuades clients to accept terms of director disqualification rather than proceeding to court, which might unexpectedly lead to demands for loan repayments shortly afterward.
Blanchfield contends that the government’s expedited process for issuing these loans, based on projected rather than actual turnover, constitutes a ‘massive systemic error’. He signals that this situation necessitates a more robust support system for affected directors as they navigate these disputes.
To address this pressing need, Complex Law plans to leverage radio advertising over the coming months to bolster its reach across the North-West region before expanding nationally. The firm intends to charge a fixed fee of £2,500 plus VAT for handling claims prior to director disqualification, with reduced fees applied thereafter.
To accommodate the expected rise in demand, Complex Law is preparing to enhance its workforce, adding five to ten new staff to their current team of seven, including three solicitors. This expansion reflects Blanchfield’s commercial acumen, drawing on his background in finance rather than traditional legal practice.
Blanchfield’s venture into law followed his tenure as finance director at a Liverpool-based consumer claims firm, CEL Solicitors, and his finance beginnings at Slater & Gordon. The acquisition of the law firm Smith Jones, now rebranded as Complex Law, was approved by the Solicitors Regulation Authority earlier this year. Blanchfield now holds a 95% share, with founder Paul Smith retaining the remainder.
Complex Law’s proactive approach highlights a significant need for professional assistance in navigating complex Bounce Back Loan disputes.
