PPI and Claims Advisory Group...

dunstonh

shazsarg1 wrote: »

I have also fallen for this scam. About a month ago someone from CAG rang me and told me I had a claim for mis-sold PPI on my personal loan and credit card. They had all my details knew about my personal loan and credit card and they even knew I was on a debt management plan. They sent me some forms to sign, the day after I received the forms CAG rang me again and seemed very keen for me to sign them and send them back to CAG. I signed the forms and sent them back to CAG.

About a week ago CAG wrote to me and sent me another form to sign and asked me for a copy of my credit card statemet so they could verify my account number for my claim. I signed the form and sent it back to them, unfortunately I have sent them a copy of my credit statement with my credit card details on.

Should I inform my bank and cancel my credit card. I am somewhat bewildered as to how they found out I had a credit card and personal loan and that I am on a debt management programme.

I will also be speaking to CAB for some advice and to find out my options.

Did they warn you that if you win your complaint, the provider will pay the redress against the arrears/defaults directly and not to you. Yet the claims company will charge you against the full amount of redress which you will have to find from your own pocket.

shazsarg1

They informed me that If I win my claim they will deduct 39% charges from whatever I get back and the rest will go towards paying off my loan or credit card.

They also said it's no win no fee.

shaz
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dunstonh

They informed me that If I win my claim they will deduct 39% charges from whatever I get back and the rest will go towards paying off my loan or credit card.

[TEXT DELETED BY FORUM TEAM] When you have arrears/defaults/amounts written off/DMP, any redress payable does not get paid out but is offset against those debts. You only personally receive a payment if the amount exceeds the debt and then only the amount over it.

e.g. redress £1500. Debt is £1400 means you get £100.

However, the claims company will charge you 39% on that £1500. So, you will get £100 but will have to pay them £585 out of your own pocket.

As magpiecottage says, you should put in a complaint straight away because their service is actually likely to put you in a financially worse situation and they didnt tell you this as part of their sales process.

magpiecottage

Although the Financial Ombudsman Service has no jurisdiction over CMCs it has, to its credit, reported some to the MOJ for this behaviour so if you do take a complaint along these lines to the MOJ it is likely to be considered sympathetically.

shazsarg1

Thank you magpiecottage and dunstonh.

Sound advice you have both given me. Really helpful.

Thanks

Shaz
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magpiecottage

I have just realised something.

If you look at the MOJ Conduct of Authorised Persons Rules 2007, it says, under Client Specific Rule 7, on page 7, "Use of the expression “no win no fee” must be in accordance with the CAP
HelpNote on “No Win No Fee claims”.

Unfortunately the MOJ's link to CAP doesn't work but this one does. Key to this is that "The ASA has upheld complaints against firms claiming 'No Win, No Fee' because, unqualified, it implied the client would be liable for no costs whatsoever."

However the current version of Claims Advisory Group's Brocuhure, (version number 4, published May 2011) is quite explicit that it is No Win No Fee but makes no reference to costs that might be incurred). Therefore, I think you can argue in such circumstances, it would be possible to make any additional costs unenforcible.

shazsarg1

Thank you magpiecottage for useful information you have given me.

I am going to got o the CAB tomorrow and make a complaint to CAG [TEXT DELETED BY FORUM TEAM].

Shaz
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shazsarg1

Hi All

I've just had another thought about about CAG and PPI claims.

Has it occured to anyone how they are finding out how much PPI peple have on their credit card/loan, because I contacted my bank (halifax) yesterday, and they said CAG have not contacted them, and furthermore they will not deal with them unless I sign something first. The chances are if one bank won't deal with them no bank will, so how can they possibly know how much PPI people have on their credit cards and send cheques to people. Either they are obtaining information illegally or they are making it up just to get money out of people.

Shaz
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kelly993

shazsarg1 wrote: »

Hi All

I've just had another thought about about CAG and PPI claims.

Has it occured to anyone how they are finding out how much PPI peple have on their credit card/loan, because I contacted my bank (halifax) yesterday, and they said CAG have not contacted them, and furthermore they will not deal with them unless I sign something first. The chances are if one bank won't deal with them no bank will, so how can they possibly know how much PPI people have on their credit cards and send cheques to people. Either they are obtaining information illegally or they are making it up just to get money out of people.

Shaz
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Hi Shaz

I’m afraid that most of these outfits are going on mass 'fishing trips'. They don’t really have any information about your current financial situation at all. What they are doing is cold calling working on the basis that most people have some form of credit. With the credit comes the possibility of having PPI, they are not really interested in whether or not it really was missold, they just want your money. They would not be able to get this info from the bank, no one can without prior authority, It difficult enough for family members of the account holder and the police trying to investigate fraud to access this sort of information so there is no way its being disclosed to any old Tom !!!!!! of Harry! I have had calls form this company, they helpfully informed me that I Could be due to receive £7000 or more in PPI compensation. This figure is of course complete nonsense so please don’t concern yourself with how they get info because the long and short of it is they are clueless and only get their info when you become prepared to engage them in conversation..which in my case will be never!

Derwent

In some cases, particularly for those who have defaulted on their credit agreements, they do actually have the data as they buy it from the scumbag DCA's who see it as a good method of flushing out people who they can not trace or who's debts they can not enforce. If someone makes a PPI claim they are by default acknowledging liability for the debt - I suspect there will be many people who will get PPI redress who will soon afterwards get blitzed by DCA's.