Fees to a Claim Managment Co

amba

Thanks for advise ,as it looks I have made a wrong decision on this.

If the original debt has been accepted as fulfilled by the terms of the IVA and the respective Bank has agreed that the debt has now been reduced to a nil balance ,surely their is nothing to be offset against.Iva letter states all debts as being irrovocably cleared and no further action will be taken in their respect.

PPI was included in some that entered IVA and this was never hiden form IP .Why would 2 seperate banks todate have agreed payments for refund of miss sold PPI although they were aware of the IVA so doesn,t this set some sort of presendance or is it just possibly a bank being careless and not fully checking its records.

[Deleted User]

amba wrote: »

it just possibly a bank being careless and not fully checking its records.

Could be, or could be that the particular Banks concerned didn't actually write off any monies owed.
Either way, there is no precedence set I'm afraid.

dunstonh

If the original debt has been accepted as fulfilled by the terms of the IVA and the respective Bank has agreed that the debt has now been reduced to a nil balance ,surely their is nothing to be offset against.Iva letter states all debts as being irrovocably cleared and no further action will be taken in their respect.

Exactly. A line was drawn in the sand saying you owed them no more. However, you are now going back to them asking them to pay you money. This is after they have already written money off (possibly more than the PPI premium you paid).

The Govt clarified the position for bankruptcy cases earlier this year by classing PPI refunds as a pre-bankruptcy asset. For IVA it is effectively up to each lender to decide how they want to treat it as there are no rules for IVA. So you get different lenders handling it differently. Also, if that lender had no amount written off as part of a settlement then it would be unaffected by the IVA.

The bottom line is that there are no rules to support you or to support the lender. It is a grey area and if the bank refunds you then you get lucky. If they refuse then you cant force them.

amba

Thanks again for additional clarrity.

So I would be correct in assuming that if the bank or c/c company dig their heals in and offer no settlement for miss sold PPI and no settlemnt is therefore made,I will not also need to pay anyhing to the CMC as "no win no fee" would seem to apply then.

Just want to be clear I won,t get stung but also get nothing back even to cover the potential fees involved.

If money comes to me I will need to pay...if nothing received no charges

[Deleted User]

amba wrote: »

So I would be correct in assuming that if the bank or c/c company dig their heals in and offer no settlement for miss sold PPI and no settlemnt is therefore made,I will not also need to pay anyhing to the CMC as "no win no fee" would seem to apply then.

No, read through the thread again (Specifically posts #9 and #8)
If the bank decide to uphold your complaint (a "win") but then off set the redress against any monies written off as part of your IVA, the CMC will STILL want their fee.

Of course, if they reject your complaint entirely then the CMC can demand no fee.

Here's the MSE advice on precisely this topic:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#claimshandler

magpiecottage

amba wrote: »

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.

There is only ONE real pitfall. That is getting a claims management company to make a complaint on your behalf and ending up having to pay them a percentage of the value of all redress awarded - even if it is set off against debts written off by the lender.

appreciated I would require more than just standard letters which I felt beyond my ability

It would have made no difference.

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.

It would depend on your contract.

However, you may have a valid complaint against your IP as the advice to use a CMC was extremely poor. FOS, the FSA, the MOJ and the FSCS all say that no better outcome is achieved by using a CMC and the IP ought to have known that set off could result in a new debt with no means to repay it.

The IP will have been giving advice under their Consumer Credit licence. Therefore you would be able to take them to FOS over this.

[Deleted User]

magpiecottage wrote: »

The IP will have been giving advice under their Consumer Credit licence. Therefore you would be able to take them to FOS over this.

Even more so, presumably, if they recommended a specific Claims Management Company?

Wouldn't this advice need to be in writing? No good if it was said 'informally" over the 'phone...

dunstonh

So I would be correct in assuming that if the bank or c/c company dig their heals in and offer no settlement for miss sold PPI and no settlemnt is therefore made,I will not also need to pay anyhing to the CMC as "no win no fee" would seem to apply then.

Unfortunately not. This is why people who have had arrears,defaults or amounts written off are always advised to never use a claims company. The claims company will charge thier percentage against the redress paid by the firm even if the redress doesnt come to you. Your IP gave you bad advice and if you find yourself in this situation then you should raise a complaint against the IP> Also, the CMC shouldn't have taken the case on if they knew your position. So, you could complain to them as well.

amba

I have re read thier contract terms and it clearly states.

We don't charge up-front fees and work on a "results only" basis. Our fees are 25% of the compensation plus VAT (payable after you receive the funds) and are capped at £2,500 plus VAT

Now if I am reading that as I thought I originally had, it states " after I have received the funds ", therefore if it stays with the bank /cc co and is used to offset a debt which no longer as it has been reduced to zero by the IVA , the money is never received by me .

ILW

amba wrote: »

I have re read thier contract terms and it clearly states.

We don't charge up-front fees and work on a "results only" basis. Our fees are 25% of the compensation plus VAT (payable after you receive the funds) and are capped at £2,500 plus VAT

Now if I am reading that as I thought I originally had, it states " after I have received the funds ", therefore if it stays with the bank /cc co and is used to offset a debt which no longer as it has been reduced to zero by the IVA , the money is never received by me .

You have received the funds, they just went towards paying off some of your debt.