"Write Off" your debt companies

CreditMonkey

This company rung me the other day and said that if i had taken out a large secured loan through a broker that they heap on the charges and that they would be able to claim back about £3k to £6k, They then take 10%+vat from the final total as their payment and i get the rest. They also say no win no fee. I know about reclaiming bank charges etc and that these companies offer to do it for a fee etc but never heard of reclaiming broker charges that i didn't know i'd paid.

Just wondered if anybody has any experience of this and any advice please.

GeorgeUK

They are probably just checking if you've been missold PPI

http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance

immoral_angeluk

Sounds like a scam to me...

CreditMonkey

Not PPI that was mentioned but not for reclaiming in this instance, they mention 'undisclosed broker commisions' as the target. Just not sure if it's worth having a crack or not.

immoral_angeluk

Personally I would avoid anyone that calls YOU offering a service. If they were any cop they wouldn't need to as you would call them.

fermi

There are a lot of scams at the moment claiming that you can reclaim just about anything.:rolleyes:

If it was legit and moneysaving, then Martin would be recommending it I'm sure.

EDIT: From the site, it looks like at least part of it is PPI and unenforceable credit agreements, both of which you don't need to pay anyone to do for you. They are adequately covered here and on CAG for free.

rog2

Wow - just looked at their website :eek: :eek:

They claim to be there to 'help you claim back your money' but, with a minimum fee of £500 + VAT, it is blatantly obvious just who they are in business to help. :mad: :mad:

Do not touch them - bargepole or no bargepole.

CreditMonkey

They even quote this on they're part of the site about PPI claims:

'Some websites offer standard letters to help you make your claim. For example you can get a standard letter for payment protection insurance refund claims from Martin Lewis's website at
MoneySavingExpert.com'


Think i might ring my loan company and ask what hidden brokers charges i'am paying. See what they say....!

duncan146294

CreditMonkey wrote: »

This company rung me the other day and said that if i had taken out a large secured loan through a broker that they heap on the charges and that they would be able to claim back about £3k to £6k, They then take 10%+vat from the final total as their payment and i get the rest. They also say no win no fee. I know about reclaiming bank charges etc and that these companies offer to do it for a fee etc but never heard of reclaiming broker charges that i didn't know i'd paid.

Just wondered if anybody has any experience of this and any advice please.

I was contacted by them on 16th May - they told me they could get money back from undisclosed brokers fees andthat they keep 25% of anything they get as payment and they charge nothing if they get nothing. I am suspicious - I belive they got my name from a data base - I have already been alerted by the Office of the Information Commissioner that my details have been circulated illegally amongst a number of loan companies and an investigation is in progress. I do not see how they can get money from a loan company just because that company did not disclose bokers fees. Have you any more data on them?

homer_j_3

Secret commissions are illegal.

There is proven law on this.

You should not use any company that takes anything from you or away from the amount that you are due.

Just to give you some insight into all of this. There was a recent case of Wilson and another vs Hurstanger ltd. The full case can be read here.. http://www.creditlaw.co.uk/Cases/wilson_v_hurstanger.htm

Now under section 39 of this.

Obviously if there has been no disclosure the agent will have received a secret commission. This is a blatant breach of his fiduciary duty but additionally the payment or receipt of a secret commission is considered to be a form of bribe and is treated in the authorities as a special category of fraud in which it is unnecessary to prove motive, inducement or loss up to the amount of the bribe. The principal has alternative remedies against both the briber and the agent for money had and received where he can recover the amount of the bribe or for damages for fraud where he can recover the amount of any actual loss sustained by entering into the transaction in respect of which the bribe was given. (Mahesan v Malaya’s Housing Society [1979] AC374, 383). Furthermore the transaction is voidable at the election of the principal who can rescind it provided counter-restitution can be made. (Panama & South Pacific Telegraph Co. v India Rubber, Gutta Percha, and Telegraph Co. [1875] 9 Ch App 515, 527, 532-3).

So, just to clarify, if a secret commission has been paid, then the loan becomes voidable.

What does voidable mean?

Voidable means that your loan becomes pure debt. All this means is the most you can payback is what the debt is. I.E interest cannot be paid upon it.

Example 1. 10k loan - £200 per month and you have paid 3 years out of the 5 year term. The loan becomes voidable. That means that you have paid £7200 (36x 200) off the debt and your debt becomes 2800 rather than the £4800 that you would have had to pay had you continued.

Example 2. 10k loan you took out 5 years ago. You have paid it off through consolidation or naturally. You find that the loan was voidable and make a claim. The claim would result in any payments that you made in excess of that £10k being returned to you.

There is help out there who will do this for free and return 100% of your claim. The company mentioned on here is working on a contingency basis and there is absolutely no reason for you to give up any of your claim.

homer_j_3

Just to add that the company in question charges a min fee of £500 but the rate is 25% of your claim amount PLUS VAT. So if your claim is £10,000 you will have £2500 deducted PLUS VAT. This type of system is as I stated above called "Contingency"

This is not too ethical when you think that the law allows you to levy your fees to your lender in cases in excess of £5000. This is probably why Martin has not supported their cause because its not very money saving if you are due 10k but only receive £7000. So, you will see that there is absolutely no sense in paying a fee when you can choose a company that offers this sort of arrangement. (This type of litigation is called Conditional Fee Agreement.)

The guys you have to watch out for are those that claim to use Conditional Fee Agreement for some of the costs and then charge you 25% on the back as well. I know of at least two companies that are doing this.

As far as I know there is only one company in this market place who offers a true conditional fee agreement basis where you pay nothing win or lose.