Help with a fee charged by a reclaim company

Lyneea

Hi there, I hope someone can help...and that this is in the right area.

My sister wanted to reclaim her bank/credit card charges. Unfortunately, she had a rare condition that resulted in her having a stroke despite only being in her early 30s. This meant she could not go through undue stress and so put in a claim for these charges via a reclaims company.

Months later, not having heard anything, she had agreed a deal with the bank for the credit card charges herself and she was given back her fees which came straight off the amount of her debt with them, plus a separate £60 cheque as a good will gesture....great result!

She contacted the reclaim company to check on the progress of the bank charges as she hadn't heard from them, and further informed them that she no longer wished for them to continue acting on her behalf for the credit card charges as she had reached her own agreement for them.

She again heard nothing for months, but recently received a letter saying that they had successfully negotiated the credit card charges, and that if she signed the letter and returned it immediately, the returned fees would be released to her (this amount also included the £60 good will measure, something she never asked for, so proving this was information obtained after the event, and not applied for by the company themselves). It also included an invoice for a fee of over £150.

She didn't sign the letter and instead contacted them and told them that she was disputing the fee, as she had already received her returned fees, months before, due to her own negotiation, and that she had informed the company of this at the time.

A few days later, her card was refused, an upon looking at her bank statements, she discovered the company had taken £100 without notice or permission despite her being clear that she was disputing the fee. She contacted her bank, and they informed her that as the company had her bank details (having been needed to chase the claims in the first place), despite her instructing them not to release any further money to this company, they could not stop them from taking money from her account (is this even true? It sounds rather appalling to me if it is).

She has tried to contact the reclaims company several times, and no one has answered any of her questions as to why they were invoicing her for work they did not complete, why they were contacting her about a claim that she had instructed them to stop pursuing as she'd already negotiated a payment herself, and as to why they had taken money from her account without permission or notice when she was clearly disputing the fee.

Apologies for the lengthy mail, but it took some explaining. Does this sound like unfair practice to anyone else? (Especially to anyone who might know about the legal standings on this issue). We are preparing a complaint to the Ministry of Justice, but I thought that someone here might be able to confirm whether or not they agree that there is a case for complaint in this case.

Many thanks to any who reply.

natweststaffmember

Did she actually put it in writing? Has she had a look at the terms and conditions of her agreement with the firm? They may have the right to charge an amount if you back out of it prior to that occurring.

Lyneea

Hi all...

Update on this....after weeks of back and forward battling with the company, and their refusing to budge on the matter, my sister suddenly got an email this morning from them waiving the fee and refunding the £100 they had taken having received her last correspondence that clearly stated we were seeking further advice on the matter.

Maybe this points to the fact they knew they were trying it on, and seeing that we were getting advice put them off? Who knows...in the end, we got the money back and the fee waived, which is the important thing!

I would definitely say this though...if you want to reclaim charges and have the time, it seems that it is worth doing it yourself if at all possible.

Thanks for your reply natweststaffmember :-)

jennyo

Lyneea wrote: »

Hi all...

Update on this....after weeks of back and forward battling with the company, and their refusing to budge on the matter, my sister suddenly got an email this morning from them waiving the fee and refunding the £100 they had taken having received her last correspondence that clearly stated we were seeking further advice on the matter.

Maybe this points to the fact they knew they were trying it on, and seeing that we were getting advice put them off? Who knows...in the end, we got the money back and the fee waived, which is the important thing!

I would definitely say this though...if you want to reclaim charges and have the time, it seems that it is worth doing it yourself if at all possible.

Thanks for your reply natweststaffmember :-)

Well done its nice to hear of success