Client Care Letter

MOTORREDRESS — a service operated by Milberg London LLP
Third Floor, Sutton Yard, 65 Goswell Road, London EC1V 7EN
Tel: [Freephone TBC] | Email: [email protected]
Authorised and regulated by the Solicitors Regulation Authority (SRA No. 670230)

Last Updated: March 2026  |  Document Version: v3.0

Thank you for instructing Milberg London LLP, trading as MotorRedress, to act on your behalf in your motor finance claim. This Client Care Letter sets out the basis on which we will provide our services, what you can expect from us, and what we will need from you. Please read it carefully and retain it for your records.

1. Scope of Work

We have been instructed to investigate and, where appropriate, pursue a claim on your behalf relating to:

• Hidden, undisclosed or excessive commission paid by your motor finance lender to the dealer/broker who arranged your finance;
• Discretionary Commission Arrangements (DCAs) that may have resulted in you paying a higher interest rate than necessary;
• Contractually tied arrangements where the dealer’s independence as a credit broker was misrepresented;
• An unfair relationship between you and the lender within the meaning of sections 140A–140C of the Consumer Credit Act 1974, as interpreted by the Supreme Court in Hopcraft v Close Brothers Ltd; Johnson v FirstRand Bank Ltd; Wrench v FirstRand Bank Ltd [2025] UKSC 33.

What is included

• Credit reference search (via AX-ai Ltd) to identify and verify your motor finance agreements;
• Reviewing your finance agreement and related documentation;
• Making a formal complaint to your lender;
• Requesting full disclosure of all commission arrangements;
• Submitting a Subject Access Request under Article 15 of the UK GDPR if the lender cannot confirm commission details;
• Negotiating settlement with the lender;
• Referring the complaint to the Financial Ombudsman Service (FOS) if necessary;
• Commencing and conducting court proceedings if necessary, including any appeal;
• Advising you on and (if appropriate) participating in any FCA-led motor finance consumer redress scheme on your behalf;
• Receiving settlement funds and accounting to you.

What is not included

• Claims relating to other financial products (e.g. GAP insurance, payment protection insurance) unless separately agreed in writing;
• Tax advice relating to any compensation received;
• Claims against the dealer/broker directly (as distinct from the lender) unless separately agreed;
• Claims relating to finance agreements entered into after 1 November 2024.

2. What We Will Do

We will:

1. Conduct a credit reference search (via AX-ai Ltd) to identify relevant finance agreements associated with you;
2. Conduct a thorough review of your finance agreement and the circumstances of the sale;
3. Assess whether your claim has reasonable prospects of success and advise you accordingly;
4. Submit a formal written complaint to your lender within 14 days of receiving your completed onboarding documents;
5. Chase the lender for a response if one is not received within the applicable timeframe;
6. Assess any settlement offer received and advise you whether to accept or reject it. The decision to accept or reject any offer is always yours;
7. Where necessary, escalate the matter to the FOS or court proceedings;
8. Keep you informed of progress at every material stage and at least every 8 weeks;
9. Account to you promptly once any compensation is received, providing a clear statement of the amount recovered, our fee (including the applicable fee cap calculation), and the balance payable to you;
10. Act in your best interests at all times and exercise reasonable skill and care;
11. Deliver good outcomes in accordance with the FCA Consumer Duty (PS22/9).

Merits assessment: If at any stage we conclude that your claim does not have reasonable prospects of success, we will tell you promptly and explain the reasons. You will not be charged for our assessment if the claim cannot proceed.

3. What We Need From You

To enable us to act effectively, we need you to:

1. Complete and sign the Letter of Authority, Damages Based Agreement, and associated documents;
2. Provide accurate and complete information about yourself, the vehicle, and the finance agreement;
3. Confirm that you have not instructed any other representative for the same claim (multiple representation check, in accordance with the FCA/SRA Joint Warning of February 2026);
4. Supply any documents you hold relating to the finance agreement (e.g. the credit agreement, pre-contract information, correspondence with the dealer or lender);
5. Consent to AX-ai Ltd conducting a credit reference search on your behalf;
6. Respond to our communications within a reasonable time (ideally within 7 days);
7. Tell us immediately if your contact details change;
8. Tell us immediately if you receive any direct communication from the lender, FOS, or any other party about your claim;
9. Not settle or agree anything with the lender directly without first consulting us;
10. Cooperate fully with any court or FOS proceedings;
11. Tell us immediately if you instruct or are contacted by any other representative about the same claim.

4. Fee Arrangement

Your claim is being conducted under a Damages Based Agreement (DBA), which means:

Worked examples

Note: Where the CMCOB fee cap applies, you will pay significantly less than 50%. The CMCOB cap is exclusive of VAT; where VAT is chargeable, the total fee (cap plus VAT) will never exceed 50% of the recovery. The DBA is a separate document which you will be asked to sign. The DBA contains the full legal terms of our fee arrangement and takes precedence over this summary in the event of any inconsistency.

5. Timeline and Expectations

Motor finance claims timelines depend on several factors outside our control. Based on current market conditions:

These are estimates only and are not guaranteed. We will keep you informed of the realistic timeframe as your claim progresses.

FCA Redress Scheme update: The FCA consulted on an industry-wide Motor Finance Consumer Redress Scheme (CP25/27) in October 2025 and is expected to announce whether it will proceed by the end of March 2026. The FCA published PS25/18 in December 2025, confirming that the complaint handling pause will end on 31 May 2026. If the FCA introduces this scheme, it may affect the timeline of your claim. We will advise you if we believe it is in your best interest to participate in the scheme, and we will not prevent you from doing so. You always have the right to participate in the FCA scheme directly, free of charge.

6. Communication

We will communicate with you primarily by email unless you request otherwise. We aim to:

• Acknowledge all correspondence within 2 working days;
• Provide substantive responses within 5 working days;
• Notify you of any material development within 2 working days of it occurring;
• Provide a written progress update at least every 8 weeks;
• Inform you of any settlement offer within 2 working days of receipt.

If the person handling your claim is unavailable, another member of the team will be able to assist you.

Accessibility: If you have any particular communication needs (e.g. large print, audio format, translation, or other adjustments), please let us know and we will accommodate them. This is in accordance with the FCA Consumer Duty requirement to provide appropriate support to all consumers, including those in vulnerable circumstances.

7. Your Right to Cancel

You have a 14-day cooling-off period from the date you sign the agreement, in accordance with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013. During this period, you may cancel without charge and without giving a reason.

After the cooling-off period, you may still terminate our services by giving written notice. Any charges for work completed prior to termination will be:

• Reasonable and proportionate to the work actually done;
• Itemised in writing so you can see exactly what you are being charged for;
• Compliant with the FCA/SRA joint expectations on termination fees (February 2026);
• Zero if your claim has poor prospects following investigation.

We will never charge an excessive or disproportionate termination fee. Please see the Damages Based Agreement for full details.

8. Our Responsibilities

We are required by the Solicitors Regulation Authority to:

• Act in your best interests (SRA Principle 7);
• Provide a proper standard of service;
• Act with honesty and integrity;
• Keep your affairs confidential;
• Handle your money in accordance with the SRA Accounts Rules;
• Maintain professional indemnity insurance;
• Comply with anti-money laundering regulations (Proceeds of Crime Act 2002 and Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017);
• Comply with the Consumer Duty to deliver good outcomes (PS22/9);
• Carry out robust onboarding checks including multiple representation verification (FCA/SRA February 2026);
• Ensure our fees represent fair value for the services provided;
• Provide clear, timely and understandable information throughout your claim.

9. Limitation of Liability

Milberg London LLP’s aggregate liability to you in respect of this matter shall not exceed GBP 3,000,000 (three million pounds), or the minimum amount required by the SRA Minimum Terms and Conditions for professional indemnity insurance, whichever is greater. This limitation does not apply to liability for fraud or reckless disregard.

10. Complaints Procedure

We are committed to providing a high-quality service. If you are unhappy with any aspect of our service, please let us know as soon as possible so we can address your concerns.

Step 1 — Contact Us

• Write to: The Complaints Partner, Milberg London LLP, Third Floor, Sutton Yard, 65 Goswell Road, London EC1V 7EN
• Email: [email protected]
• Telephone: [Freephone TBC]

Step 2 — Our Response

• We will acknowledge your complaint within 2 working days;
• We will investigate the matter and provide a detailed written response within 8 weeks.

Step 3 — If You Remain Dissatisfied

If you are not satisfied with our response, you have the right to complain to:

The Legal Ombudsman
PO Box 6167, Slough SL1 0EH
Telephone: 0300 555 0333
Email: [email protected]
Website: www.legalombudsman.org.uk

Time limits apply:

• You must refer your complaint to the Legal Ombudsman within 6 months of our final response;
• The Legal Ombudsman will only consider complaints about acts or omissions that occurred within 6 years of the date of the act/omission (or 3 years from the date you should reasonably have known there was cause for complaint).

The Solicitors Regulation Authority (SRA)

If you believe we have breached the SRA Standards and Regulations (e.g. dishonesty, discrimination, failure to act in your best interests), you may report this directly to the SRA:

• Website: www.sra.org.uk/consumers/problems/report-solicitor/
• Telephone: 0370 606 2555

The SRA can investigate and take regulatory action but cannot award compensation for poor service.

11. Regulatory Information

We are authorised and regulated by the Solicitors Regulation Authority. Our professional rules can be accessed at www.sra.org.uk/solicitors/standards-regulations/.

12. Equality, Diversity and Vulnerability

Milberg London LLP is committed to promoting equality and diversity in all of its dealings with clients, third parties and employees.

In accordance with the FCA Consumer Duty (PS22/9) and the Equality Act 2010, we will make reasonable adjustments for clients who may be in vulnerable circumstances, including but not limited to:

• Physical or mental health conditions;
• Life events such as bereavement, job loss or relationship breakdown;
• Low financial literacy or confidence;
• English as an additional language;
• Cognitive impairments or learning disabilities.

If you have any particular needs or requirements, please let us know and we will do our best to accommodate them. You will never be disadvantaged for disclosing a vulnerability.

13. Storage of Documents and Papers

At the conclusion of your matter, we will retain your file (including correspondence, documents and electronic records) for 6 years in accordance with our data retention policy and the SRA’s guidance on file retention. After this period, files will be securely destroyed. If you require your file or any documents to be returned to you, please notify us before the end of the retention period.