💼 Plevin Claims and the Business of Funding Justice: An Ethical (and Profitable) New Investment Avenue

By Rafael Vilagut Vega – Blog Feliz y Saludable

In the United Kingdom, a legal concept known as the "Plevin claim" has opened the door to a new kind of justice… and also to a new investment opportunity. Through litigation funding, specialised firms and small investors are generating returns while helping everyday citizens assert their rights against financial and commercial abuse.

But what exactly are Plevin claims? How does this investment model work, and what are the risks or rewards involved? Let’s take a closer look.

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🔍 What Is a Plevin Claim?

It all began with the legal case Plevin v. Paragon Personal Finance Ltd (2014), when Susan Plevin sued a financial institution for selling her a payment protection insurance (PPI) policy without disclosing that over 70% of the premium went to broker commissions.

The UK Supreme Court ruled in her favour, stating that this lack of transparency violated the Consumer Credit Act, paving the way for thousands of similar claims. These legal actions became known as “Plevin claims”, forming a powerful legal tool against financial misconduct.

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⚖️ How Are These Claims Funded?

Following the success of these lawsuits, companies emerged to fund smaller, high-volume, low-complexity litigation. One such firm is Woodville Consultants Limited, which finances cases such as:

• Housing disrepair

• Road traffic accidents

• And of course, Plevin claims

Their model works on a “no win, no fee” basis, where lawyers are only paid if the case is successful, sharing the risk with the client. Woodville provides short-term loans to law firms (at a 5% flat monthly interest rate), secured by an ATE insurance policy (After The Event). If the case is lost, the insurance covers the loan and related costs.

🔄 Not the Only Option: Firms like Fenchurch Legal Offer Similar Models

Fenchurch Legal, for instance, also finances litigation in the UK, offering flexible, strategic support tailored to the needs of each law firm. The company enables fast access to capital and specialises in helping solicitors who cannot rely on traditional bank financing. Like Woodville, Fenchurch focuses on small, mass claims where case volume is key to financial viability.

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💰 Why Is It Attractive as an Investment?

This system is seen by many as a form of ethical alternative investment:

• Accessible: investment amounts can start from as little as £1,000

• Profitable: successful claims can yield £4,000 or more per case (in Plevin claims alone)

• Diversified: dozens or hundreds of claims are funded at once, spreading risk

• Social impact: it provides access to justice for those who couldn’t otherwise afford it

Woodville claims a default rate below 1%, since interest is charged upfront and ATE insurance protects capital in the event of failure.

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🧠 What Are the Risks and Controversies?

Despite the seemingly low risk, this type of investment is not regulated by the Financial Conduct Authority (FCA). In fact, promotional material from both Woodville and Fenchurch warns that these opportunities are not covered by the Financial Services Compensation Scheme, and that all invested capital is at risk.

Moreover, due to the high volume and semi-automated nature of these claims, some critics warn of potential abuse of the legal system, especially in low-value litigation.

Additionally, not everyone qualifies to invest: only “eligible persons” can participate—those with high net worth, certified investment sophistication, or relevant professional experience.

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🌎 Could This Model Work in Latin America?

While countries like Costa Rica, Mexico or Colombia lack a well-established framework for litigation finance, the concept is promising and could be adapted. In regions where access to justice is costly or unequal, creating ethical funds to support legitimate claims could be transformational.

In sectors like consumer banking, insurance, or housing, this model could combine the defence of rights with financial return.

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📚 Sources Consulted

• Judgement: Plevin v Paragon Personal Finance Ltd (2014) UKSC 61

• Woodville Consultants Ltd, Your Questions Answered (2024)

• Fenchurch Legal, Information Sheet 2025

• Financial Conduct Authority (FCA), fca.org.uk

• The Law Society – Conditional Fee Agreements and Litigation Funding

• The Guardian, “Plevin case opens floodgates for mis-sold PPI claims”, 2014

  Video, Woodville Litigation Funding 2025 Explainer, https://youtu.be/lNrQvOp1xaw?si=SIf4SPpBRekk016g 

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📝 Conclusion

Plevin claims clearly show how the law can evolve to protect consumers—and how collective litigation funding can be a force for justice. At the same time, they offer a compelling way to diversify one’s investments, responsibly and with social impact.

In a global economy increasingly focused on ethics and impact, investing in justice might just be a smart—and happily healthy—decision.

📅 Feliz y Saludable, Wednesday 4 June 2025
📍 San José, Costa Rica
✍️ By Rafael A. Vilagut, International Investment Adviser across various OECD jurisdictions
📧 Email: rafaelvilagut@gmail.com
📱 WhatsApp: +506 6110 8665 

SPANISH - En español, 💼 Demandas Plevin y el negocio de financiar justicia: una nueva forma de inversión ética (y rentable), https://felizysaludable.blogspot.com/2025/06/demandas-plevin-y-el-negocio-de.html