MSE News: Financial Ombudsman says 'don't use claims management firms'

dunstonh

The problem seems to be getting worse. The number of new start up dodgy claims companies or phoenix claims companies (those that have been shut down or gone under but start up again on a new name) seems to be on the rise.

The forum is getting an ever increasing number of posts from people who have been told lies and have been ripped off by claims companies.

marshallka

On looking this firm up it states on their website they are a trading style of

Redress Financial Management

and then in the Gazette in July

Date:8 July 2010 Issue Number:59483 Page number:13026 Publication Date: Thursday, 8 July 2010
Notice Code: 2450
Petitions to Wind Up (Companies)
In the High Court of Justice
Newcastle District Registry No 1624 of 2010


In the Matter of LOOK AND LISTEN LIMITED
(Company Number 05680236)




and in the Matter of the Insolvency Act 1986
A Petition to wind up the above-named Company of 20 Kingsway House, Kingsway Team Valley Trading Estate, Gateshead, Tyne and Wear NE11 0HW (registered office), presented on 14 June 2010, by Redress Financial Management Limited, of Bradford Chamber Business Park, New Lane, Laisterdyke, Bradford, West Yorkshire BD4 8BX, claiming to be a Creditor of the Company, will be heard at Newcastle County Court, The Quayside, Newcastle upon Tyne NE1 3LA, on 9 August 2010, at 1100 hours (or as soon thereafter as the Petition can be heard).

Does this mean they are winding up?

On bizzy info it says
http://bizzy.info/uk/companies/redress_financial_management_ltd/co_no/06240014/

Which mention first gazette??????????

Active on companies house though.

milly88

Very interesting

Someone just has been scammed of £1675? so hope the Credit card company can re pay him.

marshallka wrote: »

On looking this firm up it states on their website they are a trading style of

Redress Financial Management

and then in the Gazette in July

Date:8 July 2010 Issue Number:59483 Page number:13026 Publication Date: Thursday, 8 July 2010
Notice Code: 2450
Petitions to Wind Up (Companies)
In the High Court of Justice
Newcastle District Registry No 1624 of 2010


In the Matter of LOOK AND LISTEN LIMITED
(Company Number 05680236)




and in the Matter of the Insolvency Act 1986
A Petition to wind up the above-named Company of 20 Kingsway House, Kingsway Team Valley Trading Estate, Gateshead, Tyne and Wear NE11 0HW (registered office), presented on 14 June 2010, by Redress Financial Management Limited, of Bradford Chamber Business Park, New Lane, Laisterdyke, Bradford, West Yorkshire BD4 8BX, claiming to be a Creditor of the Company, will be heard at Newcastle County Court, The Quayside, Newcastle upon Tyne NE1 3LA, on 9 August 2010, at 1100 hours (or as soon thereafter as the Petition can be heard).

Does this mean they are winding up?

On bizzy info it says
http://bizzy.info/uk/companies/redress_financial_management_ltd/co_no/06240014/

Which mention first gazette??????????

Active on companies house though.

dunstonh

Someone just has been scammed of £1675? so hope the Credit card company can re pay him.

Not if they were claiming unenforceable credit on that credit card.

marshallka

dunstonh wrote: »

Not if they were claiming unenforceable credit on that credit card.

Yep.... but most of these then blame the CMC for "telling" them to do it....its really annoying how section 75 can be used for claims such as these. The CMC's should pay back with CCJ's and their own personal assets.

I did note that MOJ has in a document that a CMC that does take money upfront has to prove they have enough money to repay clients if things go wrong (or something like that). Pity it was not in place with Cartel.

alfonzo40

Redress Claims company

Swejoe - Have you had your money reimbursed by this company yet?

My wife was cold called last week by this company re credit card limits and cc companies apparently upping limits without the customers proper authority. They told her she could get her credit card balance cleared if successful in handling this claim. Unfortunately I didn't really pay much attention to her at the time until she mentioned it again yesterday. I queried their fee and she told me that they take £500 fee off her credit card up front so when they allegedly "win" the claim, the credit card balance should be cleared by the cc company which includes the fee that "Redress Claims" have already taken!! Upon hearing this, I nearly fell off my chair and immediately started doing some research into Redress Claims.

She then checked her credit card and discovered that approx £2100 had been taken out by Redress Claims in 3 separate transactions!!!! This despite her cc bill being nowhere near that actual amount!!

Card stopped, email cancellation sent re cooling off period and registered letter to same effect. Cc fraud dept notified and dealing.

Any news on your progress would be appreciated and a warning to others to steer clear. I must say though re this topic, the thread makes for depressing reading!!

dunstonh

My wife was cold called last week by this company re credit card limits and cc companies apparently upping limits without the customers proper authority. They told her she could get her credit card balance cleared if successful in handling this claim.

Thats a scam. There is virtually no chance of success in doing this. However, it is technically a legal scam as there is virtually no regulation in this area. Even though the companies are regulated by the MoJ. The MoJ has so far proven to be a weak regulator. Although it has been shutting companies down more recently.

One MoJ rule is that a claims company needs to put the terms of their service and costs in writing first before taking the money. Many claims companies do not follow this rule. So, if this applies to your situation then you should use it as one of the reasons to complain and you should also complain to the MoJ. Whilst I said they are weak on acting, they do act when volumes of complaints build up.

LynneinUK

I have just been cold called by Redress Financial Management - claiming they could wipe out my credit card debt and get me around £3000 compensation. I was skeptical, so he gave me the company web page and the license No for me to check them out via the Ministry of Justice web page etc. Of course everything pans out and appears legit. He then asked for £495 up front - I said no way could I do that over the phone etc. He asked just for my CC no, exp and start date, but said not to give him the 3-digits off the back so they couldn't take any money, but that one of their solicitors would call me back. Sure enough, about 5-10 mins later a woman is on the phone. She tried to assure me BUT the advance fee had jumped to £790.00! I said no and that perhaps I would call them back -- then I searched and found postings here. Thank goodness I didn't do it - likely it isn't a 'scam' as such, but it's unlikely events would have panned out as wonderfully as they were making out. I would be wary.

dunstonh

likely it isn't a 'scam' as such, but it's unlikely events would have panned out as wonderfully as they were making out. I would be wary.

The word scam is difficult in this case.

They are authorised by the MoJ but what they are telling you has virtually no chance of success. They sound as if they are breaking MoJ rules by suggesting a figure (how can they give a figure without knowing the details?). Also, cold calling is not allowed if there is the chance legal action will be required to obtain redress/compensation. Based on what you have said, they cold called you and then told you one of their solicitors would call you back. The law society would take a dim view of that.

There has been some police action with some firms on the basis of advance fee fraud. You can call that a scam. What you describe is legal but as close to being a "legal" scam as you can get.

MoJ authorisation is so easy to get that virtually every person posting on this board could get authorised in a couple of weeks. There is no qualification, training or experience required.

magpiecottage

dunstonh wrote: »

Based on what you have said, they cold called you and then told you one of their solicitors would call you back. The law society would take a dim view of that.

The MOJ code of conduct also prohibits firms it regulates acting on behalf of a solicitor in a way that the solictor is prohibited from doing - so cold calling would be banned in those circumstances.