help please

MARY40

help please iam in the middle of making a ppi claim company contacted
me filled out form sent it off company dealing with is in DEFAULT so the fscs is dealing with it going on now for 5 months
dragging there feet as it was a joint loan my husband has the ppi on him not me
loan is still going on want to use a company to fight for me but fscs say any money to be paid will off set on to loan is this true as if i use a company then will be left with a bill to pay


help plzzzz

magpiecottage

The FSCS is the fund of last resort. It compensates consumers owed money by a firm it covers who cannot pay it and there is no other source of redress.

In your case there IS an alternative source of redress. Although the firm owes you the costs you incurred as a result of being missold PPI, you owe it a larger amount because of the loan. So you can simply get your money back by setting it off - i.e. reducing your loan by an amount equal to what it owes you.

This is a well established legal principle which has been upheld in the courts.

So you will not get any money back.

However, the claims company did not explain this to you in advance then it seems to be in breach of rule 11a of the Conduct of Authorised Persons Rules 2007, which says:

"A business must provide the client with the following information in writing or electronically before a contract is agreed –
a) Honest, comprehensive and objective written information to assist the client to reach a decision including the risks involved in making a claim, in particular the possibility of losing money and, in the case of legal action, appearing in court."

Client specific rule 18 says:

"A business must keep the client informed of the progress of the claim,
including any significant changes to costs that the client may have to meet, and must forward any relevant information received from the client without delay."

I think they should have been aware of this possibility as soon as it became apparent that the case was going to the FSCS because General Rule 4 says "A business shall ensure that any staff or other people working on its behalf have the necessary training and competence to perform their duties."

So I think you would have a valid complaint against them.