riiped off by CAG

smcginty

hiya i am a little confused i am with a debt management company and they contacted us about a loan we had with welcome finance they said that a company called claim advisory group had been in touch and that we may have been sold ppi illegally they said they would forward our details if we agreed and that it was free to apply. Cag rang us and told us they were sending the forms an that i should sign them which i did and sent back we didnt hear anything untl earlier this week when i received a letter from the loan company admitting liability but with no payment of compensation offer attached i then received a call from CAG wo told me that i should have received an offer and that they had for 4436.53 and that i had arrears on my loan for 1539.51 that they would deduct from the compensation and the outstanding amount would be sent to me via bacs transfer of 2897.02 then cag said that they had a fee that i would need to pay when i asked them what it was he said whatever i signed for maybe 38% but i dont remember signing for any fee i am not good at forms though and might well have done but i am sure i only signed for them to investigate for me? if this is right and i have to give them 38% that works out that they will receive 38% of4436.53 which is approx 1800 quid thatleaves us about a 1000 is this legal can they do this and is there any way i can stop it! i would rather get nothing than have sum benefit more from my misfortune than me? please help im so stupid i cant believe i let this happen!

marshallka

If the claims company has followed all the rules that the MOJ gives to claims management companies and you have signed for the contract taking the 38% then there will be little you can do.

Did you pay anything upfront for instance? Were the forms sent out to you AFTER paying upfront? There are lots of rules for CMC's to follow and it is really up to you to check if you think they have breached them and you can get out of the contract somehow.

A leaflet here may be of use to you to read and also if you feel you have been misled in this you can always make a complaint to the firm and then to the MOJ about them

https://www.claimsregulation.gov.uk/userfiles/file/Regulators%20Warning%20-%20Upfront%20Fees%20and%20cold%20calling%20by%20telephone%20Revised%20August%202010.pdf
https://www.claimsregulation.gov.uk/index.aspx

marshallka

Just found a thread here that may contain useful information

https://forums.moneysavingexpert.com/discussion/2238539

dunstonh

we may have been sold ppi illegally

Even if mis-sold, its not illegal, or even unlawful.

that they would deduct from the compensation and the outstanding amount would be sent to me via bacs transfer

That is normal. Arrears and written off amounts are normally cleared first.

i am sure i only signed for them to investigate for me?

As much as I hate scumbag claims companies, their contracts are quite strong and they wouldnt waste their money investigating it first. Claims companies tell you that you have been mis-sold even if you havent. They then put a complaint in. Sometimes they get lucky. Sometimes they dont.

if this is right and i have to give them 38% that works out that they will receive 38% of4436.53 which is approx 1800 quid thatleaves us about a 1000

Thats right.

is this legal can they do this and is there any way i can stop it!

yes its legal and no there is nothing you do do to stop it. If you employ someone to do a job for you and agree the fee in advance then you cannot complain later that you have to pay them.

i would rather get nothing than have sum benefit more from my misfortune than me?

Especially as the FSA regulated complaints process is fee of charge. You could have complained and it wouldnt have cost you a penny. However, its a bit late now and I suppose at least you have something from it. You have cleared the arrears and have now have £1000 to give you some breathing space.

please help im so stupid i cant believe i let this happen!

Its probably a bit late now to do anything about it. However, do remember that people that cold call are generally doing so because they either dont get enough business themselves through normal means or are scamming you.