Damage Based Agreements FAQs

Your Questions Answered

Our DBA FAQs aim to answer any questions you may have about the Damage Based Agreements (DBA). If you have any other questions, please contact us on 01924 675039 or email [email protected]

1Why do I need to sign a DBA / CFA Agreement?

As you will already know from your compliance call and the initial contract you’ve signed for the relinquishment work we are currently working on, any work relating to compensation or financial recovery falls outside the scope of this agreement and is subject to a new contract and fee arrangement. Signing this agreement allows us to carry out this work on a no win no fee basis, without these instructions we are unable to act on this basis. Failure to sign or provide written instruction confirming that you do not wish to pursue a financial recovery claim will result in a delay in your case.

2But I haven't been relinquished from my Timeshare yet?

You do not need to be relinquished for us to start your financial recovery claim. We may run these at the same time. We may start the compensation claim before we finalise your relinquishment as most Timeshare companies will request that you sign a waiver preventing you from pursuing them at a later date for other matters including compensation.

3Why am I paying you 25%, I've already paid you?

As laid out in your original agreement and compliance call, financial recovery work is subject to an additional fee arrangement. The agreed fee you have already paid to us relates to the original agreement instructing us to work on relinquishing you from your timeshare contracts. The new fee arrangement is done on a No Win, No Fee basis which is referred to in the Agreement. We have to have this in place to be able to take your instructions and actually carry out the work on your behalf. This is a separate piece of work which we need to be formally instructed on.

4Why do I need ATE insurance?

ATE insurance or After The Event insurance is a policy of insurance that will cover you in the event that the case is lost at court. In the event that you lose, the policy will cover any disbursements and any element of the opposing parties costs mentioned in the Agreement. We will advise you prior issuing any court proceedings if we believe it necessary to acquire this insurance. The cost of this policy will be payable by you and it will not be recoverable from the opposing party. This also shows the timeshare companies that an insurer is willing to insure you against losing that we are in a strong position against the timeshare companies. They will think twice before risking a trial in court. If we have to issue proceedings we may be asked to confirm that the matter is insured.

5How much is the ATE insurance?

We will advise you about this at the point this becomes relevant to your particular case, this fee will be deducted at the end from any money we recover. We will advise you should this prove to be necessary and what the exact cost will be in your case.

6You say 'No Win No Fee' but you refer to expenses and costs?

We have to include these because they are payable in the case and upon winning this matter we shall be seeking to recover them from the opposing party so we must include them and also make you aware of their existence. We are trying to be as transparent as possible.

7Do I have to pay any of these other expenses and costs you are referring to?

No, but as we have said we have to advise you of them so we can recover them from the opposing party in the event that you are successful and thus we have to make you aware of this. This is on the basis that you observe the terms of our agreement.

8What happens if I lose?

The opposing party can seek for you to pay their costs. This is called an adverse costs award. This is what the ATE insurance policy is designed to cover you against. Should this prove to be necessary we will advise you further in more detail. You are not exposed to the possibility of exposure to an adverse costs award until proceedings are actually issued and therefore we will advise you fully about this risk prior to the issue of proceedings on a case by case basis.

9What happens if I do not sign the DBA?

You should only sign the agreement if you wish us to pursue the compensation part of the claim to allow us to represent your interests on a no win no fee basis. You are under no obligation to sign the pack, but you must be aware that by not doing so we are unable to progress matters any further on your behalf.

10Are you saying that if we do not sign this new contract you will not progress the case?

We will not be able to include you in the compensation part of the claim as you have not instructed us by signing the paperwork as above.

11What is a No Win No Fee Agreement?

Where we take the risk of the litigation and fund this as a firm on the basis that we believe there is a successful case. If we win we take the fee from that win, if there is no win there is no fee. We are not requesting any further money from you in advance in addition to what you paid previously.

12Is a Damages-Based Agreement (DBA) the same as a No Win No Fee Agreement?

Yes, it is.