If the claims management co insist there is nothing more to pay are we safe

born2bongo

We have paid an up-front fee to a claims management company who had promised us we would have nothing to pay whether we won or lost. We had that in writing so we felt it was trustworthy.

Having paid the fee, we now have documents from the solicitors they are using. There is a lot of small print but the claims management co have attached their own summary of the content, insisting we will have nothing to pay.

Nevertheless, the small print suggests that we would have to make good the legal fees if the award were less than their fees.

The small print also refers to a document 'Conditional Fee Agreements: What you need to know'. Nothing with this title was included in the pack so we tracked it down on the internet. We then realised that the pack included a cut down version of this, and one line that was missing appeared to emphasise our liability in the above circumstances.

We've queried this with the claims managment company but they have dodged the questions and reiterated that we won't pay any further fees unless we decide to withdraw or we don't co-operate

So, if we pull out now we have lost a substantial fee and have a debt to settle. If we proceed, and they lose, we get our fee back and still have the debt. Two questions:

1. What constitutes a win? Is it still a win if they only get the loan written off? Or only part of it?
2. If the claims management company has insisted there is nothing else to pay, is that enforceable if we subsequently get asked for the balance of legal fees?

TIA

~Brock~

Do you have any evidence that your credit agreement is invalid, other than their tempting promise?

Are you aware of the recent High Court cases that are gradually closing the lid on viability of their busienss models?

If you have only just got the information through, and haven't signed anything, cancel now before its too late because I am assuming that because you want to try and worm out of your credit agreement that you can ill afford to lose any more money to these vultures.

You are entering a vipers nest. This company will not have got your interest at heart. You already appear to be having doubts. Go where common sense tells you to go.

ILW

You may find the solicitors fees are separate to the claims co, and you are liable if the case fails.

LongTermLurker

These people build their business model on dubious grounds, based on loopholes, twisted wording and borrowers' desire to abandon their obligations (yes I know I've just entered a minefield...)

I would see the entrants to that business model as being either unreputable or jumping on the bandwagon. It sounds like you're too late to pull out from what you say, although check out the distance selling regulations which give you a 14 day cooling off period (iirc). Your fee would have been better placed paying towards your debt - and then a conscious effort to carry on your good intentions.

izools

Yes indeed take heed from the above advice, as the recent court ruling has found that although credit agreements that don't contain the prescribed terms in the prescribe format are unenforcable under the consumer credit act they are still enforcable under contract law.

It was the loophole in the consumer credit act 1974 which allowed the claimant to take the creditor to court and get a ruling under s.174 that the agreement is unenforceable.

Although this may still be possible, it is a moot point as the creditor can have the court make a ruling that the debtor is liable to pay under common contract law, irrespective of enforcability under the consumer credit act.

Sorry to burst your bubble, but its best to do it sooner rather than later!