PPI - Calculation of charges

Andyshaw81

I have recently claimed for miss sold PPI on a current loan. The loans has not ended so i still have outstanding payments.

I did this through I Smart who state in there T&Cs that if i received £1000 compensation i would pay 25%

I received an offer of £800 from my bank and accepted thinking i would pay I smart approx £200. This seemed ok for little or no work.

I then received an invoice for over £1000. I Smart say that because i cancelled my PPI they saved me money thus they have calculated the invoice based on this, however i believe that once the bank admits to miss selling the PPI the policy is cancelled. I could also have cancelled the ppi prior to the claim.

In my opinion they are ripping me off and doing the same miss selling as the PPI. I have read the T&Cs in detail and nowhere do they tell you this is how it will be broken down. If it did i would have cancelled the PPI prior to contacting I smart and claimed for what i had payed NOT WHAT I WILL BE PAYING

Please help

Andy

marshallka

Andyshaw81 wrote: »

I have recently claimed for miss sold PPI on a current loan. The loans has not ended so i still have outstanding payments.

I did this through I Smart who state in there T&Cs that if i received £1000 compensation i would pay 25%

I received an offer of £800 from my bank and accepted thinking i would pay I smart approx £200. This seemed ok for little or no work.

I then received an invoice for over £1000. I Smart say that because i cancelled my PPI they saved me money thus they have calculated the invoice based on this, however i believe that once the bank admits to miss selling the PPI the policy is cancelled. I could also have cancelled the ppi prior to the claim.

In my opinion they are ripping me off and doing the same miss selling as the PPI. I have read the T&Cs in detail and nowhere do they tell you this is how it will be broken down. If it did i would have cancelled the PPI prior to contacting I smart and claimed for what i had payed NOT WHAT I WILL BE PAYING

Please help

Andy

There have been a couple of posts about how CMC's are making money out of people that have won PPI claims and on the amount of PPI that is taken off the loan too (as if you have pocketed the money) leaving people with money to actually fork out rather than money to come in.

Often these companies look at it like they have "saved" you from future payments of PPI and this amount has been taken off your loan so in effect IF you paid off your loan balance today you would have less to pay because of this. I don't know how a court of law would see this though? They should have made it clear in their terms and conditions though that any money taken from the loan balance because of PPI is also their gain at whatever they charge. What exactly does their terms and conditions say on this?

Andyshaw81

marshallka wrote: »

There have been a couple of posts about how CMC's are making money out of people that have won PPI claims and on the amount of PPI that is taken off the loan too (as if you have pocketed the money) leaving people with money to actually fork out rather than money to come in.

Often these companies look at it like they have "saved" you from future payments of PPI and this amount has been taken off your loan so in effect IF you paid off your loan balance today you would have less to pay because of this. I don't know how a court of law would see this though? They should have made it clear in their terms and conditions though that any money taken from the loan balance because of PPI is also their gain at whatever they charge. What exactly does their terms and conditions say on this?

Basically it says what i said previously. It states "Fee" payable to ISmart for services being 25% plus VAT of any compensation recoverd by us for you. For example if we recover £1000 compensation our fee would be 293.75. You would receive £706.25

"Services" means services provided i.e assessing preparing submitting and negotiating your claim

There is NOTHING regarding what happens if the PPI is cancelled. It draws you in thinking you will get £700 but does not tell the true story

marshallka

Andyshaw81 wrote: »

Basically it says what i said previously. It states "Fee" payable to ISmart for services being 25% plus VAT of any compensation recoverd by us for you. For example if we recover £1000 compensation our fee would be 293.75. You would receive £706.25

"Services" means services provided i.e assessing preparing submitting and negotiating your claim

There is NOTHING regarding what happens if the PPI is cancelled. It draws you in thinking you will get £700 but does not tell the true story

But they will argue it is not "cancelled" PPI but actually that its missold PPI (which is different) and therefore ANY PPI that was added to your loan was what they won back for you. (including the unpaid part of the PPI).

Most of these CMC's only set up for profits (would not surprise me if half the people working there actually sold the PPI in the first place) and really do not care about "you" and whether you have been treated right or wrong by the banks. They just saw it as a way to make money and they have done and although they are wrong in how they do it is legal unfortunately because they are being allowed to get away with it by the authorities.

I would make a complaint to MOJ (about their terms and conditions not being clear) and see whether they can help (although they don't seem to do anything actually!!).

Sorry you had to learn this and if I were you I would fight it also but you may be beaten and have to pay as their terms and conditions (although they are not clear) state that any compensation won by them (and they are including the compensation taken off your loan amount as you no longer have that debt) would be chargeable by them as a percentage.

Andyshaw81

Clearly this seems the case, however, isnt this just miss selling PPI claims? I plan to talk to Citizens advice so lets see......

Andyshaw81

Also. If they did state this before i decided to go ahead i would have cancelled the PPI prior to the claim.

marshallka

Andyshaw81 wrote: »

Also. If they did state this before i decided to go ahead i would have cancelled the PPI prior to the claim.

A bit like PPI then. Perhaps we will see a CMC set up for complaints against CMC's and some raking in more profits. They should be better regulated and MOJ seems to let them get away with murder.

rachaels_2

this has happened to me to.
I have recently received settlement for reclaiming a ppi. However i am not happy with the invoice from the company who claimed it on my behalf. (I-smart consumer services).
The loan is a 15 year loan, with 12 years left. I-smart have charged us 25% of the refunded ppi that we have paid over the last 3 years. We are happy with that. I though that was it. Job done.
I-smart also want 25% of the rest of the value of the ppi over the next 12 years! (as we benefit from not paying it)!
This means our refunded ppi claim amount equals their invoice.
What a waste of time and money!!
I have paid them the 25% of our settlement and asked them to prove to me where and when I agreed to pay the rest. I received no terms and conditions. Our claim was a result of them phoning us.
Please can anyone help me out? I am sure I have a reason to complain about this.

rachaels_2

did you get anywhere with this battle?