A newly accountant-owned law firm is embarking on a nationwide campaign to support directors entangled in Bounce Back Loan disputes.
Tom Blanchfield, managing director of Complex Law, announced the firm’s strategic move to attract directors facing challenges with Bounce Back Loans (BBL). Currently assisting around 50 clients, the firm aims to expand its case load to between 100 and 500 cases monthly by the year’s end, amidst £1bn loans defaulting.
As Mr Blanchfield pointed out, numerous small businesses that secured BBLs were compelled to cease operations during the COVID-19 pandemic and its aftermath. Now, the Insolvency Service is actively pursuing these business owners, often convincing them to concede their incompetence as directors, leading to disqualification rather than court proceedings. However, this is not the end, as they might unexpectedly face demands for loan repayments shortly after.
Mr Blanchfield highlighted a significant systemic error, accusing the government of hastily instructing banks to guarantee BBLs based on projected rather than actual turnover. Consequently, Complex Law, headquartered in Liverpool, plans to utilise radio adverts to extend their services initially across the North-West before reaching a national scope.
The firm implements a fixed fee structure of £2,500 plus VAT for managing BBL claims pre-director disqualification, with reduced fees afterward. An anticipated influx of cases may necessitate hiring five to ten additional staff, supplementing the existing team of seven, which includes three solicitors.
Tom Blanchfield, a former finance director in the legal sector, ventured into ownership after purchasing a 95% share in Smith Jones, a firm transitioning as its founder, Paul Smith, approached retirement. Following rebranding and website development, Complex Law redirected its focus from previous case types, including solar panels, to broader claims such as professional negligence and fraud recovery.
Mr Blanchfield, drawing from a financial background distinct from traditional legal practitioners, envisions a progressive law firm aligning with the aspirations of younger generations.
Complex Law’s upcoming campaign reflects a proactive approach in addressing the repercussions of Bounce Back Loans on business directors.