PPI Claims Companies - misleading!

DevonDelight

Hi. Can anyone help? I (perhaps foolishly) used a claims company to reclaim my PPI from Lloyds bank. I wouldn't have thought of reclaiming it but they cold called me and assured me they could reclaim my money. The claim was successful and Lloyds sent a letter to me telling me that they would repay the money direct to me. I then had a letter from the claims company telling me I must complete their request for payment (fees of 30% + VAT!) immediately to 'avoid any delay in your money being transferred to you.' Naturally I didn't pay them anything and a week later I received a cheque from Lloyds bank.
My question is do I need to pay the 'Request for Payment' from the claims company? They gave me no information whatsoever about their extortionate fees until after I had received the letter from Lloyds, and I also feel that they were trying to mislead me by telling me I had to pay them upfront in order to receive the money. Am I within my rights to withhold payment?

Thank you in advance.

magpiecottage

Did they not provide you with terms and conditions when you signed up to their services?

dunstonh

My question is do I need to pay the 'Request for Payment' from the claims company?

If you dont want to be taken to court and suffer the consequences of that, then yes.

They gave me no information whatsoever about their extortionate fees until after I had received the letter from Lloyds

Do you normally employ companies to do jobs without asking them how much it costs first?

Did you need read the documents you signed when you returned the paperwork to them?

I also feel that they were trying to mislead me by telling me I had to pay them upfront in order to receive the money.

Its a common lie the dodgy ones make.

Am I within my rights to withhold payment?

What evidence do you have to back up your accusations against them? i.e. when you are taken to court, what can you show the judge?
What does your agreement state? (if none, this may be a get out for you - however, if there is one then you are stuffed)

_Andy_

88 miles per hour!

The_Swerve

DevonDelight wrote: »

Hi. Can anyone help? I (perhaps foolishly) used a claims company to reclaim my PPI from Lloyds bank. I wouldn't have thought of reclaiming it but they cold called me and assured me they could reclaim my money. The claim was successful and Lloyds sent a letter to me telling me that they would repay the money direct to me. I then had a letter from the claims company telling me I must complete their request for payment (fees of 30% + VAT!) immediately to 'avoid any delay in your money being transferred to you.' Naturally I didn't pay them anything and a week later I received a cheque from Lloyds bank.
My question is do I need to pay the 'Request for Payment' from the claims company? They gave me no information whatsoever about their extortionate fees until after I had received the letter from Lloyds, and I also feel that they were trying to mislead me by telling me I had to pay them upfront in order to receive the money. Am I within my rights to withhold payment?

Thank you in advance.

What company did you use? Did you look on their website before you committed. Cooling off period?????

It must be said, no matter what ones opinion is about fee charging PPI reclaims companies (personally, I think its daylight robbery, so easy to do it yourself for the cost of a few stamps etc) if its there on the contract regarding the fees, yes they should be paid. Whether the fee is extortionate or not, that was a choice you made at the start.

I have heard one or two horror stories about companies who have actually pushed the bankruptcy route on people who have not paid they fees (especially when the ppi reclaim compo has merely gone to arrears with the bank etc) Whether those stories are true or not I dont know, I just wouldnt want to test that theory out myself!!!!

DevonDelight

To magpiecottage, dunstonh, and The Swerve

Hi guys, thanks for your replies.

The company is called The ClaimsGuys. I had no terms and conditions, no offer of a cooling off period. I did read the documents and the only document there was was a basic form to fill in my details and send back. Nothing else and no small print. They seemed quite surprised when the bank notified them that they were sending the cheque straight to me and they tried to quickly get me to pay upfront.

I was thinking of making them an offer (since they did do some work for me) for a much smaller amount. What do you think?

magpiecottage

DevonDelight wrote: »

The company is called The ClaimsGuys. I had no terms and conditions, no offer of a cooling off period.

That sounds like a breach of the Conduct of Authorised Persons Rules 2007.

In theory you could simply complain that, because they did not tell you of it you did not realise you could cancel.

The_Swerve

DevonDelight wrote: »

To magpiecottage, dunstonh, and The Swerve

Hi guys, thanks for your replies.

The company is called The ClaimsGuys. I had no terms and conditions, no offer of a cooling off period. I did read the documents and the only document there was was a basic form to fill in my details and send back. Nothing else and no small print. They seemed quite surprised when the bank notified them that they were sending the cheque straight to me and they tried to quickly get me to pay upfront.

I was thinking of making them an offer (since they did do some work for me) for a much smaller amount. What do you think?

The website does have the following:
How much does it cost?

After you have submitted details of your Loan Agreements you will receive written confirmation of the exact cost that will be involved. The cost is 30% of the amount reclaimed plus VAT. However this is only payable if the claim is successful.


Did you receive this written confirmation?

The_Swerve

magpiecottage wrote: »

That sounds like a breach of the Conduct of Authorised Persons Rules 2007.

In theory you could simply complain that, because they did not tell you of it you did not realise you could cancel.

I agree.

There is no reference I can find on the website regarding any cooling off period. Was it in the paperwork they sent you?

The MoJ document does state:
A business must allow a ‘cooling off’ period of at least 14 days after signing any agreement, during which period the client may cancel the agreement and be entitled to a refund of any payments made to the business or in connection with any insurance policy, loan or other agreement taken out in relation to the agreement.

tifo

The_Swerve wrote: »

There is no reference I can find on the website regarding any cooling off period.

looking at their 'Terms of Engagement' at 1(f) it gives the cooling off period as 14 days. This is again re-iterated at 4(h).

it took me a few mins to find the document from their website.

DevonDelight wrote: »

I did read the documents and the only document there was was a basic form to fill in my details and send back. Nothing else and no small print.

the 'Terms of Engagement' document is referred to BEFORE the signature in the authority letter the OP would have signed.

TO WHOM IT MAY CONCERN – THIS AUTHORITY RELATES TO THIS AND ALL PREVIOUS CREDIT CARDS WITH YOUR COMPANY
I have appointed The Claims Guys to act on my behalf in respect of all formal action regarding the negotiations as set out in the Terms of Engagement.

magpiecottage

tifo wrote: »

looking at their 'Terms of Engagement' at 1(f) it gives the cooling off period as 14 days. This is again re-iterated at 4(h).

But the OP did not get the Terms of Engagement

it took me a few mins to find the document from their website.

"a few mins" is rather different to "immediately obvious". It sounds more like "buried in the small print".

the 'Terms of Engagement' document is referred to BEFORE the signature

Which does not necessarily mean that the OP had it available to him at all.

in the authority letter the OP would have signed.

This assumes the OP had the document you are looking at provided to him/her.

You also assume they approached the AC in the first instance. Since these people regularly spam me, I have to say that I think it is likely to be the other way round.