Long Read: battling speculative complaints

Dan Richards, head of remediation programmes at Auxillias, sees the Vanquis v TMS Legal case as a turning point in the fight against mass complaint activity.

In Vanquis Bank Limited v TMS Legal Limited [2025] EWHC 1599 (KB), handed down in late June, the High Court refused to strike out a lender’s legal claim against a solicitor-led claims management company (“CMC”) that submitted over 33,000 affordability complaints - many allegedly without merit or proper due diligence.

While the case has not yet determined liability, the ruling marks the first time that the economic tort of causing loss by unlawful means has been allowed to proceed in the context of mass consumer complaints. For funders, brokers and lenders operating across motor and asset finance, it could be a game-changer.

TMS Legal, a claims management firm regulated by the Solicitors Regulation Authority (“SRA”), began submitting high volumes of affordability complaints against Vanquis Bank from late 2023. By August 2024, more than 33,000 complaints had been lodged, with over 12,000 escalated to the Financial Ombudsman Service (“FOS”). Of those, around 84pct were either rejected or withdrawn.

Vanquis argued that many of the complaints were time-barred, lacked substance or were unsupported by meaningful evidence. Legal proceedings were issued, with the bank alleging that TMS had submitted complaints:

- without valid client instructions

- using inadequate or generic questionnaires

- relying on declarations aimed at circumventing time limits

- with the help of unqualified staff operating under minimal supervision

It further alleged that TMS had made misleading representations to consumers, encouraging complaints with little regard for legal viability - an approach Vanquis claimed prioritised volume over validity and ultimately damaged both its operations and customer relationships.

TMS attempted to have the claim dismissed through summary judgment, arguing that the economic tort could not apply to such a dispute between a lender and a solicitor-led CMC. But the High Court disagreed.

In simple terms, the tort of causing loss by unlawful means allows a business to claim damages when another party intentionally harms its interests by unlawfully interfering with a third party - in this case, TMS’s own clients. Vanquis alleges that TMS breached core duties to those clients, including the obligation to act in their best interests, as set out in the SRA’s Guidance on Claims Management Activity (updated July 2024).

Mr Justice Jay found that, although novel, the claim had sufficient merit to proceed. He noted that, if the allegations are proven, the conduct could be considered ‘egregious’ and summarised: “TMS had no idea which claims would succeed and did not care.”

The judgment does not decide the final outcome. But it confirms that a lender’s challenge to volume-driven, meritless complaint activity can survive early legal scrutiny - a development many in the leasing and asset finance sector will welcome.

This ruling introduces a potential new route for funders, brokers and lenders to respond when faced with mass complaints that appear industrialised, commercially motivated or lacking a clear legal basis.

While many firms receive legitimate complaints that must be addressed properly, the concern is growing around mass-manufactured complaints that:

- lack case-specific evidence or documentation

- appear driven by financial incentives rather than client need

- place disproportionate strain on operations, governance and reputational risk.

Until now, firms have been largely reliant on the FOS, FCA or SRA to respond to this kind of behaviour. This High Court decision opens a direct legal remedy, particularly where there is evidence of bad faith, client harm or significant business disruption.

This case does not mean Vanquis will succeed at trial — but it does establish that lenders can, in principle, hold CMCs accountable for reckless complaint strategies that breach professional duties and cause economic harm.

The days of unchecked complaint volume may be nearing an end. This judgment could play a key role in shaping how firms defend themselves in a more complex, complaint-driven environment.

(This is an edited and shortened version of the full column in the July 2025 issue of Leasing World magazine.)

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