Before you think about using a Claims Management Company

Common_Sense_2

Read this note from the Ministry of Justice:

http://www.justice.gov.uk/downloads/guidance/inspection-monitoring/claims-management-regulation/consumer-ppi-factsheet.pdf

Might also be worthwile reading the Ministry's warning to Claims Companies regarding their practices here:

http://www.justice.gov.uk/downloads/guidance/inspection-monitoring/claims-management-regulation/business-ppi-factsheet.pdf

And this

http://www.justice.gov.uk/downloads/guidance/inspection-monitoring/claims-management-regulation/note-about-claims-management-companies.pdf

Always remember that for the cost of some paper, a few stamps and the advice on here you could save yourself a lot of money!

dunstonh

Reading the MoJ factsheet on PPI, it looks like they accept the "future instalments saving" (example as an acceptable charging method.

Personally, I think that is a disgraceful charge but maybe I am just alone there.

Common_Sense_2

dunstonh wrote: »

Reading the MoJ factsheet on PPI, it looks like they accept the "future instalments saving" (example as an acceptable charging method.

Personally, I think that is a disgraceful charge but maybe I am just alone there.

It is disgraceful, which is why consumers should be asked by a CMC "are you in arrears or the debt sold etc" and told in advance if it is likely that they may have to pay the CMC more than they actually receive. The Ministry of Justice is consulting on proposed changes to the rules that regulate CMC's but this hasn't been included.

DrSqueeze

dunstonh wrote: »

Reading the MoJ factsheet on PPI, it looks like they accept the "future instalments saving" (example as an acceptable charging method.

Personally, I think that is a disgraceful charge but maybe I am just alone there.

Agreed - anyone in debt should have protection from a system which will simply create another debt.

src007

dunstonh wrote: »

Personally, I think that is a disgraceful charge but maybe I am just alone there.

I agree that this is a shocking practice and I'm probably the only person on this forum you'll see defending CMC's. If you take the example that's quoted in the table the consumer will get a cheque for £1000 and then a claims company will bill for £900. That to me is a 90% charge!

How are they able to talk to a new client about their fees and then write a letter of complaint to a lender saying 'you didn't make your costs clear?'.

What baffles me is that reclaiming PPI is often quite easy. Why do they need to charge so much? Like with the selling of PPI a tidy profit could have been made without the misleading and extortionate charges. Why the MoJ didn't ban this years ago I will never know.

Corporate greed wins again. :rotfl:

Common_Sense_2

src007 wrote: »

How are they able to talk to a new client about their fees and then write a letter of complaint to a lender saying 'you didn't make your costs clear?'.

What baffles me is that reclaiming PPI is often quite easy. Why do they need to charge so much? Like with the selling of PPI a tidy profit could have been made without the misleading and extortionate charges. Why the MoJ didn't ban this years ago I will never know.

Corporate greed wins again. :rotfl:

for once i agree with you (doesn't happen much!):D