Advice needed on ppi claim company fee payment

jtn

Hi everyone i would really appreciate any advice on this issue.
My dad who is an oap has dealt with a company to reclaim misold ppi through his bank.

His banks ppi claims department sent him an offer in dec 2011 for related loans and addressed personally to him no mention of any third parties dealing with his claim.
Then in jan 2012 the company dealing with the misold ppi claim sent him a letter stating because the sum was only a small amount less than £10 they say on there letter they would not be claiming any charges and will be closing there papers.

In the meantime my father has had deposited in his account early feb 2012 approx £2000 for misold ppi from his banks ppi claims department.
Then mid february he received a letter from the ppi claims company he originally dealt with which says as follows:
We have been advised by (my dads bank) that a final decision has been made for your loan accounts,and we are waiting for a copy of the final decision letter.
If you have received a copy of the final decision letter please forward a copy in the prepaid envelope enclosed.

My question is this because he had already received a letter from them back in january stating that they would not be taking any fees,have they any legal right to pursue for any payments as the offers to me look like they have come directly from his banks ppi claims department,no mention of any third parties,any advice would be welcome.

dilus

jtn wrote: »

Hi everyone i would really appreciate any advice on this issue.
My dad who is an oap has dealt with a company to reclaim misold ppi through his bank.

His banks ppi claims department sent him an offer in dec 2011 for related loans and addressed personally to him no mention of any third parties dealing with his claim.
Then in jan 2012 the company dealing with the misold ppi claim sent him a letter stating because the sum was only a small amount less than £10 they say on there letter they would not be claiming any charges and will be closing there papers.

In the meantime my father has had deposited in his account early feb 2012 approx £2000 for misold ppi from his banks ppi claims department.
Then mid february he received a letter from the ppi claims company he originally dealt with which says as follows:
We have been advised by (my dads bank) that a final decision has been made for your loan accounts,and we are waiting for a copy of the final decision letter.
If you have received a copy of the final decision letter please forward a copy in the prepaid envelope enclosed.

My question is this because he had already received a letter from them back in january stating that they would not be taking any fees,have they any legal right to pursue for any payments as the offers to me look like they have come directly from his banks ppi claims department,no mention of any third parties,any advice would be welcome.

As far as I am aware (and the legal eagles may advise better) the big statement in your post is "related loans"
When you file a complaint either by yourself or with a claims company some banks investigate fully ALL loans that are related to the one you are complaining about. The fact that the one you were complaining about never paid out enough for the claims company to demand a cut it has probably uncovered other "related loans" that you are entitled to redress on. The claims company can then argue that the initial action by them uncovered these other "related loans" and as such they are entitled to their fee

jtn

First of all may i thank you for your response,let me be more specific regarding the phrase related loans.
All the loans he has taken out have been with the same bank all home loans over a 6-7 year period,the bank classes some of these as chain loans as he renewed a few of them before completing the previous one,with maybe a few payments left.
Does this shed any further light as regards stopping them asking for an extortianate amount.

amersall

As dilus said,they look at all loans when you put a mis sell claim,your dad signed a contract with this company to pay them a fee if redress was won,look at the contract and see what it says.

It is regardless of how many loans were there or how many redress will be paid on,the company will want the fee.

Having said that, when the company sent the first letter what did it say exactly,was that the end of the contract or just for that one loan redress?.
How did this company (and who was are they) contact your dad and did he pay an upfront fee?.

jtn

Hi he paid no upfront fee and he contacted them.
The company in question was gladstone brookes
below is exact details of the letter sent hope this helps name of bank ommitted:
Re: Your payment protection insurance (ppi) claim
We write with reference to the above and outstanding matter.
We can confirm the (dads bank) have put forward an offer for £12 .
As this offer is a low value,we do not intend to charge for our services.
Should you have an acceptance form to complete please sign and return to (dads bank) and you will receive your redress.
We will close our files of papers and ask that should you have any further loans with ppi or have any family/friends with ppi that you contact us.

[Deleted User]

jtn wrote: »

Hi he paid no upfront fee and he contacted them.
The company in question was gladstone brookes.

Just a pity so many are falling into the trap of using a Claims Company in the first place. I have a work colleague who still believes he has got more than he would have received if he had complained personally; even though he paid 25% of his redress to Gladstone Brookes!
I think it best for your Dad to put aside whatever percentage he agreed to pay GB and for him to expect them to subsequently demand said sum. As others have said, it's the contract he signed with GB which you need to carefully scrutinise.

amersall

This seems final to me, unless the ops Dad told them to look at the other loans?, and then he would have had to sign for them to look at these, so in effect 2 contacts would have had to be signed.

We will close our files of papers and ask that should you have any further loans with ppi or have any family/friends with ppi that you contact us.

jtn

I offer my sincere apologies for the late reply,firstly i can confirm that he has not signed any other papers and can only come to the assumption that someone in their department was alerted to the later offer made after they had sent the closure letter and are hoping that he will sign this and return it to them to collect fees.

miserableindebt

A similar thing happened to my mother in law, and she just wrote back and said to them that they had closed the account, so because chased them herself (she didnt she just received a cheque) she will not be paying them, and they wrote back and said ok.

Dont know what broker she used though.

[Deleted User]

jtn wrote: »

I offer my sincere apologies for the late reply,firstly i can confirm that he has not signed any other papers and can only come to the assumption that someone in their department was alerted to the later offer made after they had sent the closure letter and are hoping that he will sign this and return it to them to collect fees.

Yes, it's difficult to know whether they are simply "hoping" you'll send the offer letter or the Bank have informed them because your Dad authorised them to act on his behalf in this complaint.
I do hope you hear no more from them, but I'd still set aside the % your Dad agreed to pay them for a while just in case.

[Deleted User]

miserableindebt wrote: »

A similar thing happened to my mother in law, and she just wrote back and said to them that they had closed the account, so because chased them herself (she didnt she just received a cheque) she will not be paying them, and they wrote back and said ok.

The difficulty with that course of action is that the Broker might not have agreed that she chased them herself. Probably better for the OP of this thread to adopt a wait-and-see approach.