One of the key funders of the high-volume claims industry has gone into administration.

A notice in the London Gazette stated that BV Corporate Recovery & Insolvency Services was appointed earlier this month to handle the affairs of Fenchurch Legal.

Lowry Trading, a company owned by a family trust fund, applied to the court for an order to appoint an administrator.

Fenchurch Legal told the Gazette last week it intended to contest the application, but the appointment was subsequently confirmed. There has been no further comment. 

The funder has been a key figure in the emergence of high-volume firms running thousands of housing disrepair, financial mis-selling and Plevin PPI claims. It provides loans for between 12 and 18 months to cover disbursement funding and working capital requirements. 

Louisa Klouda crop

Founder Louisa Klouda (pictured) and Jerry Yanover remain as directors

Its business model was to fund small-ticket claims at high volumes to spread the risk across multiple cases and case types.

Fenchurch was owed significant sums by the collapsed north-west firms Nicholson Jones Sutton Solicitors and McDermott Smith. The funder was running with net liabilities of almost £567,000 at the end date of its 2024 accounts.

Founder Louisa Klouda and Jerry Yanover remain as directors, according to Companies House records.

Fenchurch Legal’s issues reflect wider struggles in the claims market, where some firms have built huge caseloads but not necessarily turned these into profit-making businesses.