What Does Fenchurch Legal Fund and Why?

This article offers insight into our approach, explaining Fenchurch Legal’s funding criteria on what we fund and why.

Intro to Fenchurch Legal

Fenchurch Legal specialises in providing disbursement funding to small to medium-sized law firms in the UK. Our funding supports small ticket ATE-insured cases, covering associated expenses and backed by After the Event (ATE) insurance policies.

Small ticket litigation funding plays a vital role by offering an alternative approach to financing legal claims. Fenchurch Legal has positioned itself as a small-ticket funder, focusing on quantity and supporting a high volume of cases.

This focus ensures that even modest claims, such as those for housing disrepair, receive the financial backing necessary to navigate the legal process. Ultimately, it facilitates access to justice for those who might otherwise be deterred by the upfront costs.

What does Fenchurch Legal fund?

Fenchurch Legal is solely focused on funding smaller cases with an established legal precedent at high volumes. These protocol-driven consumer claims such as housing disrepair, PCP, and financial mis-selling, offer a high potential for success and make them suitable case types for funding by Fenchurch Legal.

We have a deep understanding of the small-ticket claims landscape and have developed a rigorous and data-driven compliance process tailored to this specific segment of litigation funding. This allows us to partner with trusted law firms and high-potential case types with lower individual risk profiles.

Additionally, the small claims that we fund are always against highly liquid defendants, such as government entities, banks, or insurance companies. This ensures that we have no risk of non-payment of damages and costs.

Overview of Claim Types Funded by Fenchurch Legal

Case Type
Legal Basis & Precedent
Outcome & Success Rate
Housing Disrepair (HDR)
Addresses defects making a property unfit for habitation (e.g., leaks, damp, faulty electrics) and holds landlords accountable for maintenance.
  • Strong legal precedent for tenants’ rights.
  • The Homes (Fitness for Human Habitation) Act 2018 imposes a clear legal duty on landlords to maintain specific standards.
Courts consistently uphold tenant’s rights and there is a high success rate in securing compensation and repairs due to clear legal guidelines.
Plevin (PPI)
  • Claims related to the undisclosed commission on PPI policies.
  • Protects consumers from unfair practices by financial institutions.
  • Supreme Court decision in Plevin vs. Paragon (2014) established legal grounds for reclaiming PPI premiums with high commission rates.
  • Clear benchmark that makes it easier for potential claims.
High potential for reclaiming significant amounts of money based on the Plevin ruling.
Financial Mis-selling
  • Selling a financial product under misleading pretences or unsuitable for the customer’s needs.
  • Holding financial institutions accountable.
  • Financial Conduct Authority (FCA) regulations prohibit mis-selling practices.
  • History of successful claims against financial institutions.
  • High potential for compensation depending on the severity of the mis-selling.
  • Established guidelines for what constitutes mis-selling, making it easier for wronged consumers to seek compensation.
Tenancy Deposit (TDS)
  • Disputes over the return of tenancy deposits and unfair withholding of tenancy deposits by a landlord.
  • Protects tenants from unreasonable deposit deductions.
  • Strong legal precedent exists due to clear regulations.
  • Landlords are required to protect deposits in a government-approved scheme.
Courts consistently uphold these regulations, making claims well-founded with good success rates when the evidence supports the tenant’s position.
Personal Contract Payments (PCP)
  • Addressing unfair terms hidden within car finance agreements.
  • Fights for fair treatment in car finance contracts.
  • Legal precedent supports claims because the Consumer Credit Act mandates fair disclosure and responsible lending.
  • Established case law regarding unfair PCP terms, particularly excessive fees.
Success rates can be high for mis-sold PCP agreements, as evidenced by past cases and FCA investigations uncovering widespread issues.
Business Interruption (BI)
  • Claims by businesses for unforeseen disruptions, such as during the COVID-19 pandemic.
  • Supporting small businesses in recovering from disruptions.
Supreme Court ruling in favour of the 2021 test case by the FCA on business interruption insurance helped define a strong legal basis for BI claims.
Success rates vary depending on the specific cause but the legal framework makes them a viable option with positive outcomes in securing compensation for losses.

Risk Mitigation

Fenchurch Legal prioritises portfolio diversification by focusing on a high volume of smaller cases across various law firms and case types, effectively spreading risk and reducing reliance on the success of a single case.

We mitigate risk by selecting cases with a strong track record and favourable legal precedent and by requiring After-The-Event (ATE) insurance to protect against financial losses.

Funding is provided only to law firms with a proven track record in the specific case type. Firms entering new areas must demonstrate expertise and successful case closures before receiving funding.

Each case type undergoes rigorous compliance vetting, including an examination of case referrals, fee earners, and the law firm’s experience This thorough process ensures we partner with trusted law firms, further mitigating investment risks.

Track record

At Fenchurch Legal, we are proud of our track record, having funded over 12,000 small consumer claims to date. Each claim is carefully selected based on its strong legal merits, which significantly increases the chances of success.

Our selection process and focus on high-potential case types are reflected in our results. Out of 4,314* loans that have been repaid, 92% were successful. For the 8% that were unsuccessful, the ATE policy provided the necessary coverage.

This track record highlights our commitment to choosing cases with strong merits and high chances of success, ensuring both investor satisfaction and financial stability.

*Data correct as of 30 April 2024


In summary, Fenchurch Legal specialises in funding small cases with a strong legal basis and track record of success. Our focus on consumer claims such as housing disrepair, Plevin, PCP, financial mis-selling, tenancy deposits, and business interruption ensures high success rates and effective risk management.

Law firms partnering with Fenchurch Legal benefit from our financial support, enabling them to handle a higher volume of cases with confidence. Investors can trust our careful selection of solid claim types, offering stability and potential returns on their investments.

For more information on our funding solutions or litigation funding investment opportunities, please contact us.

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