Claiming back using section 75

marshallka

dunstonh wrote: »

Whilst not wanting to be judgemental, it is not the only greed. There was the greed of the claims company. They played on the greed of consumers. If it almost like a classic con.

Yes, they are the ones claiming the banks are greedy.

Why do these firms say they have not got the money to pay back consumers? How does the law allow them to get away with it? Why can't they be made to pay people back from their "own" assets..

dunstonh

Why do these firms say they have not got the money to pay back consumers?

Its a pyramid style scheme.

1 - Money comes in from people paying up front.
2 - Directors draw money from the company. Staff are paid, bills are paid.
3 - There is little or no money coming in from the unenforceable credit side. So, the wages and drawings are being paid from the money paid up front.
4 - when refunds are due to be paid as there is no case to answer, there is no money in the pot.
5 - People complaining are refunded out of the new people paying up front and everyone else is fobbed off with lies (like case is progressing etc).
6 - finally, they can hold on no more and the scheme collapses with no money available to pay anyone.

It seems many claims companies follow this model and dont expect this one to be the last. Anyone who has used a claims company needs to be trying to get a refund now before their claims company goes under.

How does the law allow them to get away with it?

Because there is very little regulation of claims companies and technically there are doing no wrong under current laws.

Why can't they be made to pay people back from their "own" assets..

Limited company. The directors assets are safe.

marshallka

dunstonh wrote: »

Its a pyramid style scheme.

1 - Money comes in from people paying up front.
2 - Directors draw money from the company. Staff are paid, bills are paid.
3 - There is little or no money coming in from the unenforceable credit side. So, the wages and drawings are being paid from the money paid up front.
4 - when refunds are due to be paid as there is no case to answer, there is no money in the pot.
5 - People complaining are refunded out of the new people paying up front and everyone else is fobbed off with lies (like case is progressing etc).
6 - finally, they can hold on no more and the scheme collapses with no money available to pay anyone.

It seems many claims companies follow this model and dont expect this one to be the last. Anyone who has used a claims company needs to be trying to get a refund now before their claims company goes under.



Because there is very little regulation of claims companies and technically there are doing no wrong under current laws.



Limited company. The directors assets are safe.

But it could be classed as "fraud" maybe with some companies especially those that open and close over and over and then the directors assets are no "safe". There are rules for directors of limited companies.

dunstonh

marshallka wrote: »

But it could be classed as "fraud" maybe with some companies especially those that open and close over and over and then the directors assets are no "safe". There are rules for directors of limited companies.

I think it is fraud. The whole thing is. We know the lies that claims companies tell people to get them to sign up. We also know that many encourage lies in the complaint as well.

The MoJ are a very weak regulator and dont seem to be doing anything about it.