A warning re: "FREE" claims companies

melorablack

marshallka wrote: »

Some companies do after the event insurance which they then use to claim the fees with as i understood. Someone on here used to mention this. All the fees then are levied onto the lender????????? Have you ever heard of this melorablack. I think I know who you are on about and it was someone that was pming people on here. I think maxdp and showergirl had pm's and mentioned this earlier. I do know that there are lots on here that do this regular as well. Perhaps just ignore it.

I checked in work because this question has come up before and I was told that we NEVER pay claims companies fees, even if they take us to court. It may be different for solicitors but that is for the Legal department to control and I'm not part of any of that

So the only advice I would give is don't use a claims company unless you can afford the fees yourself and don't mind having to pay them.

marshallka

melorablack wrote: »

I checked in work because this question has come up before and I was told that we NEVER pay claims companies fees, even if they take us to court. It may be different for solicitors but that is for the Legal department to control and I'm not part of any of that

So the only advice I would give is don't use a claims company unless you can afford the fees yourself and don't mind having to pay them.

I totally agree with you melorablack. I just hope some that have used this type of service are not landed with fees... I would not take the risk myself but others may.

maxdp

marshallka wrote: »

Some companies do after the event insurance which they then use to claim the fees with as i understood. Someone on here used to mention this. All the fees then are levied onto the lender????????? Have you ever heard of this melorablack. I think I know who you are on about and it was someone that was pming people on here. I think maxdp and showergirl had pm's and mentioned this earlier. I do know that there are lots on here that do this regular as well. Perhaps just ignore it.

It was eclipse99 and I have reported them and hopefully others have as well

petermb_2

For information. No lender is going to pay a claims company their fees. It just will not happen. All Claims companies that are dealing directly with a lender will be working on contingency basis, which means that they claim a percentage of the compensation.

It is only Solicitors that work on Access to Justice. It is only solicitors that use After the Event insurance and it is only solicitors who are legitimately allowed to levy their fees to the lender.

The main reason that you would use a solicitor and Melorablack will confirm, I am sure, is that when you claim your PPI back the lender does not admit that you may also be due the commission they earned and they will not admit that the comissions paid to your broker may be due back to you also. The lenders are very keen to keep this stuff to themselves and it requires the threat of litigation to "remind" them of their true obligations.

Only a solicitor has the knowhow and the ability to "remind" the lender to repay this extra money in addition to the PPI Premium that is due.

On the other hand you can simply let them get away with it and just claim your PPI premium back.
It is your choice, afterall.