Paragon Reclaim/7 Marketing have "guaranteed" a refund

HayleyJ_2

Dear All
I am looking for some advice here.
I have a claim for PPI from Paragon Personal Finance that 7 Marketing have been dealing with since last November. They contacted me today to say that the first solicitor that they "employed" to deal with my case has rejected it, stating that I had received a payout on the insurance before redemption (I hadn't!). 7 now tell me that they are going to hand my case over to a NEW solicitor and they claim that I am GUARANTEED to receive my PPI amount, which they calculate at over £18,700 (!!) and they are also going to try to get back the commission, which is over £6000 (!!). They stated that I was definately missold the policy and quoted something to do with a breach in the Credit Consumer Act 1974.

HOWEVER, in order for them to do this, they have stated that I need to pay the solicitor £600 for the paper work. I think that I might be being fleeced here, but I am looking to you guys for some advice please. Is it normal to pay up front for a solicitor to take on your case?

Thanks in advance
Hayley

P.S. At the time of taking out the loan - July 2002 for £25K - I was never told that the policy only covered 5 years when the loan period was for 25yrs and I was never asked any health or appropriateness questions to establish if the policy was suitable. Additionally, I was employed by the NHS at the time, who have an excellent employee protection benefits including sick leave, so I actually didn't NEED the policy at all!!!

Katkins1982

Posting off letter to A&L because i think i was mis-sold PPI.

Wish me luck!!:j

di3004

HayleyJ wrote: »

Dear All
I am looking for some advice here.
I have a claim for PPI from Paragon Personal Finance that 7 Marketing have been dealing with since last November. They contacted me today to say that the first solicitor that they "employed" to deal with my case has rejected it, stating that I had received a payout on the insurance before redemption (I hadn't!). 7 now tell me that they are going to hand my case over to a NEW solicitor and they claim that I am GUARANTEED to receive my PPI amount, which they calculate at over £18,700 (!!) and they are also going to try to get back the commission, which is over £6000 (!!). They stated that I was definately missold the policy and quoted something to do with a breach in the Credit Consumer Act 1974.

HOWEVER, in order for them to do this, they have stated that I need to pay the solicitor £600 for the paper work. I think that I might be being fleeced here, but I am looking to you guys for some advice please. Is it normal to pay up front for a solicitor to take on your case?

Thanks in advance
Hayley

P.S. At the time of taking out the loan - July 2002 for £25K - I was never told that the policy only covered 5 years when the loan period was for 25yrs and I was never asked any health or appropriateness questions to establish if the policy was suitable. Additionally, I was employed by the NHS at the time, who have an excellent employee protection benefits including sick leave, so I actually didn't NEED the policy at all!!!

Hayley

Can you not do this yourself with the free help from everyone on here with the free templates etc?

I would not bother with doing that to be honest with you why should you pay out????
Were Paragon under GISC or the FSA as such at the time you taken this out?


I would wait for some advice on this one in my opinion, hopefully someone will be along soon, but if you want help to do this for yourself we can help you through this, good luck with this case.;)

HayleyJ_2

Hi Di! Great to hear from you!

I have been doing this myself for years. I first started the complaint when I settled the loan in 2004, then took it up again in 2007 and here I am again, but this time I thought that I would let the "professionals" have a bash (they took it on in November last year).

To be honest, I work full-time, have two small kids and am training for a marathon, so any spare time is spent on housework, my husband and occassionally my friends (not always in that order!) so I am happy for someone else to do it if they can GUARANTEE the reclaim.

I also don't have an issue with the fee amount, given that I could quite possible reclaim between £18,700 and £25,000, either.

However, I am uncomfortable with 7's claim that they can GUARANTEE a reclaim. I am somewhat suspicious given the length of time I have been involved in this pain in the !!! situation!!

I'll happily give them the money but I want MY MONEY!!!

di3004

HayleyJ wrote: »

Hi Di! Great to hear from you!

I have been doing this myself for years. I first started the complaint when I settled the loan in 2004, then took it up again in 2007 and here I am again, but this time I thought that I would let the "professionals" have a bash (they took it on in November last year).

To be honest, I work full-time, have two small kids and am training for a marathon, so any spare time is spent on housework, my husband and occassionally my friends (not always in that order!) so I am happy for someone else to do it if they can GUARANTEE the reclaim.

I also don't have an issue with the fee amount, given that I could quite possible reclaim between £18,700 and £25,000, either.

However, I am uncomfortable with 7's claim that they can GUARANTEE a reclaim. I am somewhat suspicious given the length of time I have been involved in this pain in the !!! situation!!

I'll happily give them the money but I want MY MONEY!!!

Hiya Hayley good to hear from you too.;)

Yes I know what you mean hun.
You need to be guaranteed this money.

I am hoping others will give you some advice on this matter, so fingers crossed someone will be along soon, will keep my fingers crossed for you, but we are here for help when you require this and if you decide to want to try again on your own.:A;)XX

PNPSUKNET

If no joy from the actual company that the ppi is todo with, make a free complaint to the fos. Dont bother with paying companys

dunstonh

they claim that I am GUARANTEED to receive my PPI amount, which they calculate at over £18,700 (!!) and they are also going to try to get back the commission, which is over £6000 (!!).

If you are guraranteed to get this money, does that mean that 7 marketing will pay you if the case fails?

P.S. At the time of taking out the loan - July 2002 for £25K - I was never told that the policy only covered 5 years when the loan period was for 25yrs and I was never asked any health or appropriateness questions to establish if the policy was suitable. Additionally, I was employed by the NHS at the time, who have an excellent employee protection benefits including sick leave, so I actually didn't NEED the policy at all!!!

If you get the best NHS benefits that means 6 months full pay, 6 months half pay. There is no redundancy benefit. The PPI on the loan is paid directly to the lender so wouldnt fall under a means test and would be paid. So, whilst its not the absolutely best option available, you would have benefited in the event of a claim.

If it was single premium PPI (which is what it sounds like) then it doesnt need a solictor and complaints can be made free of charge and over 90% of simple premium PPI complaints are upheld.

they claim that I am GUARANTEED to receive my PPI amount, which they calculate at over £18,700 (!!) and they are also going to try to get back the commission, which is over £6000 (!!).

I'm doubtful about that claim. If the company void the PPI policy from inception and refund premiums then often they will clawback the commission paid if they can. Even if they dont clawback the commission, the £18k figure you mention (which seems damned high for 5 years worth of PPI - £300 pm equiv seems like a massive amount) would cover the commission payments as the commission is paid out of the premiums paid. Getting a refund of premium(s) and commission isnt logical.

There has only been one known court case so far that has ruled in favour of consumer in getting the rep to refund a commission. In that case the rep had taken a fee and a commission and didnt disclose the commission. if he hadnt taken the fee, its probable that the case would have not found in the favour of the consumer. We dont know yet as no-one has tried one but its unlikely as you expect the individual to be paid. Either by you or by the company (not both, unless you are explicitly aware of it).

petermb_2

Hayley
there is no need to pay anyone for seeking compensation. You can hang around wating for the FOS to deal with it. It is free but takes a while.
There are now claims services that charge no fees and can get the maximum compensation where the fees involved are added to the claim and billed to the lender. Do not pay claims companies or solicitors.

HayleyJ_2

Dunstonh,

I agree that the reclaim amount that 7 Marketing are quoting is way off, as I have calculated it to be between £6-8K - this makes me even more sure that they have no idea what they are doing. RE; the commission reclaim - they state that they have never lost a case when reclaiming commission, but didn't actually state how many successful cases they have had!!

My case has already gone and come back from the FOS, who cannot deal with it as Paragon were not regulated by them at the time the loan was taken out. This can only be reclaimed via the courts.