Fees to a Claim Managment Co

amba

Hi Guys.

New to this forum but could do with some advise.

Succesfully completed an IVA last year and had certificate issued late February 2012 so all now completed.I have spoken to my IP regarding claiming back PPI and he has advised me that as far as he is concerned I am completely clear to reclaim anything myself and he now will play no further part,however he did advise that due to the many potential pit falls I could encounter it would be wiser to get a CCM co to deal with it even if it incurred charges as would require specialist help/advise.

Engaged a CCM co and so far have had 2 offer letters back amounting to £7500 with a further 8 potential claims to still be dealt with.

Fees for the work is 25% + vat which ,whilst I considered to be high appreciated I would require more than just standard letters which I felt beyond my ability,so went along with agreement.

Question I have is considering several claims are with the same bank would I be liable for just the 1 set of fees or am I going to be presented with a 25% fee for each and every individual payment ? CCM co have told me they have a maximum fee of £2500 so could I realistically argue that that is the maximum payment or again is that likely to be capped on each individual claim payment.

Difference in my fees could work out considerable so would like any advise please.

I am not trying to get away with paying for a service just would like to get a feel for my maximum possible fee.

[Deleted User]

amba wrote: »

am I going to be presented with a 25% fee for each and every individual payment ?

I'm afraid so.
Check the terms of your contract, you've signed for them to represent you in every PPI complaint you make.
I don't think you were given good advice, as I can't think of any "potential pitfalls" you could encounter where a Claims Company is any different to doing it yourself. Ditto your requirement for something more than "standard letters", CMCs invariably use form letters anyway.
Too late now, of course.
Sorry.

amba

That was my thought with the fees,although I did accept I would probably end up paying so be it.

Some claims do go back to early, mid 90,s so maybe thats hy Ip suggested it.

I suppose the way I should,and did ,look at it was what ever I get back is more than I had before so perhaps also being debt free is the extra plus side to it all.

[Deleted User]

amba wrote: »

Some claims do go back to early, mid 90,s so maybe thats hy Ip suggested it.

Again, there is no advantage in using a CMC for old finance. The Bank will either have records or they won't, the CMC won't (and can't ) provide any.
Sorry (again).



(I do hope the person advising you to use a CMC didn't actually recommend one? If that was the case, I'd suspect him of being on commission from them!)

amba

Should have really gone it alone,but felt that the IVA would be the stumbling block and professional help was needed,this being further comfirmed by my IP.

Oh well,but thanks for atleast explaining the situation

jay-1

amba wrote: »

Should have really gone it alone,but felt that the IVA would be the stumbling block and professional help was needed,this being further comfirmed by my IP.

Oh well,but thanks for atleast explaining the situation

Chalk it up to experience - stick around and check out all the different boards on here. I have saved thousands since joining and would never dream of buying anything without checking the voucher board first. The grabbit board is great too and can get manic at christmas with all the best buys.

The_Swerve

I thought it was the IPs job to do the PPI reclaims on IVA/Bankruptcy cases anyway (or at least get someone else to do it), and given that it would appear the reclaims would be from prior to the IVA, any potential claim would be considered an asset and therefore wouldnt go to the claimant anyway, it would go to the creditors....or have I got that wrong?

[Deleted User]

The_Swerve wrote: »

given that it would appear the reclaims would be from prior to the IVA, any potential claim would be considered an asset and therefore wouldnt go to the claimant anyway, it would go to the creditors....?

Depends on the circumstances. The Banks are certainly allowed to off set any redress awarded against monies they've written off as part of the IVA. However, if there have been no monies written off by that Bank there will usually be no off setting.

The danger of course is that ,if the lender does off set, the Claims Company will still want their fee. This is the reason no one on an IVA, DMP etc should consider using a CMC.


In bankruptcy cases, the bankrupt person can't claim any money from PPI complaints. As you say, they are regarded as assets which the Official Receiver would seize for redistribution to former creditors

dunstonh

There is the risk on this case that any redress payable will go against the debt written off as part of the IVA (if the lender had written any debt off). The claims companies usually bill against the full amount of the redress even if you do not get the money yourself. Only if that lender has had an amount written off can they keep it. it cannot be used against other creditors (unlike bankruptcy where it can). It is a grey area as there are no rules saying they cant do it and not rules saying they shouldnt. The Govt clarified bankruptcy but not IVAs.

The advice of the IP to use a claims company was bad. Ignoring the fact that using a claims company does not increase your chances of success, it is recommended that you never use a claims company if you have had arrears, defaults or amounts written off as part of a settlement as you may not get the money in your hands but still get the bill sent to you.

[Deleted User]

You really have to post more quickly, Dunston!:p

dunstonh

Note to self... increase typing speed