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Holding fee ?

I phoned mercers to discuss my situation and was advised to make a claim on my payment insurance.I got back to them saying that I have sent the form away and was waiting reply.

The lady on the phone told me i'd have to pay £14 holding fee which would hold the account for 4 weeks while this gets sorted and no more action will get taken for this 4 weeks.

Is this correct or are they just trying to eek some money from me ?

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