A couple who instructed the now defunct claims firm Pure Legal have described the moment bailiffs knocked on their door demanding £35,500 in legal bills.
Kelly Ashurst was at home with her two children in the week before Christmas in 2021 when she was handed a statutory demand and told she had 18 days to make the payment or risk bankruptcy.
At first Ashurst thought it was a mistake, but it emerged that the debt related to legal fees from a cavity wall insulation claim from a year earlier. ‘We were overwhelmed with stress, anxiety and worry, not knowing how we would manage to pay off our debt or where to seek help,’ she said.
Michael Ashurst added: ‘We were terrified of losing our home and had no clue how we would provide for our family. It was a nightmare. I felt a deep sense of shame; how did we end up in this situation? The weight of it all pushed me into depression.’
The couple, from Wigan, had been approached by a claims management company in 2017 which suggested they could make a claim over cavity wall insulation. They were then referred to Pure Legal which was instructed to pursue a no win, no fee claim.
The couple said they were assured they would not have to pay any legal costs if the case failed, and Pure arranged a £15,000 loan from litigation lender Novitas to meet expenses.
Proceedings were issued in December 2018 but Pure advised that the claim should be dropped in December 2020, citing concerns over expert evidence.
When debt collectors arrived at their door, the couple called Pure Legal but were told the firm had gone into administration a month earlier. The appointed solicitor manager said the couple did indeed owe the defendant’s costs for the aborted claim.
Kelly Ashurst said: ‘We had specifically asked Pure Legal about any risks, and they reassured us with their “no win, no fee” and insurance policy. I asked them, “How could this be happening?” It turned out that the insurer refused to pay out, claiming that Pure Legal had been negligent in handling the claim. As a result, the burden of the debt fell squarely on us.’
The couple still owe more than half the original debt. They – along with around 150 others – have instructed national firm Hugh James to pursue a negligence claim against Pure’s indemnity insurers, who deny liability.
Erich Kurtz, senior associate in the Hugh James financial mis-selling team, said the Ashursts feel let down by the legal system and how they were treated.
‘It is truly appalling what they have had to endure, the financial burden and strain on both their family and mental health, despite being told that they had the benefit of a “no win, no fee” and cover against adverse costs,’ said Kurtz.
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