Claims management company (CMC) complaints - ask the ombudsman your question

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  • Thanks all much appreciated
  • Morning


    I've just received a Final Reminder threatening legal action if I don't pay within 7 days


    They told me on the phone to ignore the letter as they had notes about me not receiving the offer and that the reply to there query with Barclays could take up to 10 days. The made contact on the 13th.


    I've sent an official complaint by email copying the address above.


    What if they do take legal action?
  • dunstonh
    dunstonh Posts: 116,040
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    John_bones wrote: »
    Morning


    I've just received a Final Reminder threatening legal action if I don't pay within 7 days


    They told me on the phone to ignore the letter as they had notes about me not receiving the offer and that the reply to there query with Barclays could take up to 10 days. The made contact on the 13th.


    I've sent an official complaint by email copying the address above.


    What if they do take legal action?

    The courts generally will not accept cases where it can be shown that there is an issue and it is being investigated. i.e. they have to submit in advance of a court appearance that they have made every effort to give you a chance to pay. However, you also get a chance to supply your info in advance. A judge then looks at both sides and decides whether it is appropriate to bring to court or throw it out.

    The minute the judge reads that you have not received the payment and the CMC are trying to bill you in advance, it would be thrown out.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • fermi
    fermi Posts: 40,546
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    I would be surprised if they were daft enough to try to enforce what are arguably highly unfair terms. Especially for a mere £59.34!
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Alpine_Star
    Alpine_Star Posts: 1,354
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    You can make a complaint to your CMC for chasing payment before you have received the offer


    Here again we have a disconnect in policy between LeO and the regulator, whose position is:


    ''There is nothing in our rules that bars CMCs from requiring payment of their fee on receipt of a reasonable offer (one in accordance with FCA/FOS guidelines). We would require that businesses make this absolutely clear in the pre-contract information that they are required to provide to prospective clients and also that they apply the Client Specific Rule 1a) requirement to act fairly and reasonably in dealings with all clients with regard to their fee collection process.''


    You guys need to get your heads and your act together.
  • The problem here is they have sent a final demand for an offer that I have not yet received and I have advised them off this on many occasions by both email and over the phone. Only over the phone have they said I should ignore the final demand.
  • I see section e on the T's & C's states that if either they or I receive the offer they can demand payment at that point.


    Still worried about my credit score
  • Alpine_Star
    Alpine_Star Posts: 1,354
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    John_bones wrote: »
    I see section e on the T's & C's states that if either they or I receive the offer they can demand payment at that point.


    Still worried about my credit score


    You must a) insist on e-mail confirmation of what they told you on the phone about ignoring demands and b) file a formal complaint which will kick any enforcement action into touch.
  • I've filed a formal complaint but have no confirmation of the advice to ignore. Thinking of paying to be honest can't afford to lose my credit score as I'm in the market for a mortgage soon.
  • dunstonh
    dunstonh Posts: 116,040
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    John_bones wrote: »
    I've filed a formal complaint but have no confirmation of the advice to ignore. Thinking of paying to be honest can't afford to lose my credit score as I'm in the market for a mortgage soon.

    Do not pay. It is not a credit agreement and cannot be held against you unless it goes to court. Even if it goes to court the judge will give you a chance to come to an agreement before making a ruling. That assumes it goes to get and gets accepted by a judge and that doesnt seem likely.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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