ppi charges

slater24

my mum+dad claimed ppi,company uphold claim and took money off account yet had a bill of £1400 off team who took up claim.Never right?

dunstonh

slater24 wrote: »

my mum+dad claimed ppi,company uphold claim and took money off account yet had a bill of £1400 off team who took up claim.Never right?

It is right.

Your mum and dad had a debt in arrears/default. They received a refund but it was applied to the default and therefore are better off because of it.

As they chose to employ a company to use the free of charge complaints process, then they are required to cover the costs and fees agreed with that company. In this case the £1400.

The claims company would have made their charges clear before your parents received the money (typically told as a percentage of the amount of redress payable). If the claims company knew that they were in arrears or had defaulted then they should have told them this could happen. However, if they didnt know, then they wouldnt know to tell them.

Someone in arrears, defaulted or had amounts written off should never use a claims company as you could end up seeing nothing in your hands in the form of redress but still end up with the bill.