SSB: Victims have suffered for years
Former clients of SSB Law have welcomed the decision of Novitas Loans to halt any recovery of the loans given to them to pursue cavity wall insulation claims.
However, they said the way it has been handled “raises yet more questions”.
According to the SSB Victims Support Group – which has been lobbying government and regulators since the collapse of the Sheffield law firm – Novitas has been issuing letters confirming to former clients that they loans have been “fully cleared” and closed with a zero balance.
But the group said Novitas “has not explained who paid these loans off, why it has taken so many years, or why victims were made to suffer in the meantime”.
Many of those affected had not even understood at the time SSB took their case on that they were taking out a loan, believing instead that they were covered by after-the-event insurance.
In a statement, it explained: “Victims have been left in emotional distress for years, worrying about huge debts that hung over their heads. Many lived in fear of debt collectors, and all endured prolonged uncertainty. Now, without explanation, the loans have been wiped…
“At the same time, victims are also raising serious concerns about how these loans were sold in the first place. Many say they were never clearly informed that this was a loan at all – let alone one that carried such high interest.
“Funds were drawn down in full at the very start of the process, meaning fees and insurance premiums were paid immediately, even in cases that were weak or never stood a chance. This structure left families incurring years of spiralling interest while Novitas profited whether cases succeeded or failed.
“This is yet another example of the systemic failures in how these mis-sold legal actions were managed, funded and insured. The lack of transparency compounds the sense of injustice.”
A spokeswoman for the group added that this was “mis-selling on a massive scale. Victims deserve answers, not silence”.
We have approached Novitas Loans for comment. The company stopped taking on new customers in 2021 and has been trying to recover unpaid loans from after-the-event insurers.
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